Menu
Home>Levelset Community>Legal Help>Mechanic's Lien / Bankruptcy Court / Construction Law NJ

Mechanic's Lien / Bankruptcy Court / Construction Law NJ

New JerseyBankruptcyBond ClaimsConstruction ContractJoint ChecksMechanics Lien

Hello, There was damage done to my home. A construction company had me sign a contract that allowed him to accept money directly from the Mortgage company. The company took 2 years to due the project and its still not done. In the middle of construction the Mortgage company issued a check with my name and the Contractor's name on it. The Contractor died. His company filed for Chapter 11. What are my rights to get that check endorsed by the Bankruptcy Trustee and given to me to finish my house? It is my understanding that if there is a Mechanic's lien against the property that the money is NOT part of the bankruptcy estate and that the Trustee can simply endorse the check on behalf of the Construction company. What if there is not a mechanic's lien on the property? Does the check become part of the chapter 11 filing, and my insurance money is just mixed in with all of the other Chapter 11 unsecured creditors? Can I at least be given Priority status as a creditor? This is taking place in NJ Bankruptcy Court under chapter 11 . Can I file against his bond company? I read that I might be able to give a 30 day notice to the Construction company to force them to file a mechanics lien, is that true? Any information would be very helpful.

0 replies