Bankruptcy Legal Questions

This page organizes the most recent questions about bankruptcy in the construction industry . Continue reading the queries below for answers to bankruptcy questions from construction attorneys and other payment specialists. If you need help with bankruptcy, you can also ask a question yourself for free.

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I have a contract for purchase of assets that is open ended when i can take it out. The company then filed bankruptcy. The assets are worth upwards of 5-10 million dollars. Can I file a lien on the property even though the file bankruptcy? ...Read More
New YorkBankruptcyLien PriorityRecovery Options
I filed a mechanics lien against a property where we completed work and were never compensated for. Recently, we found out that the owner foreclosed on the home. The lender has now put it up for sale and is under contract. We contacted the lender to inquire if title company is aware of the lien on the property and he notified us that his foreclosure wipes out our lien. I proceeded to check with the county clerk and out lien is still recorded but he insists that they can in fact sell the house with clear title because the foreclosure wipes out our lien. Is this correct?...Read More
TexasBankruptcyMechanics Lien
Well, I went thru an adversary proceedings over a tuition debt. The proceedings took over two years to get a ruling, in which the judge ruled in my favor. Now when I filed for bankruptcy it was only in my name not my husbands, but the case proved that I was the primary care giver for our kids. I discovered that a lien was placed on the property only in his name after I tried to refinance the loan to include money for needed repairs to the property....Read More
IllinoisBankruptcyLien DeadlinesLien ReleasesNotice of Intent to Lien
Why is Libbey Glass able to pay out this money if 503c says it is illegal without meeting certain criteria? I guarantee there were not job offers for all of the executives at Libbey Glass. Plus I thought 503c is supposed to include 1yr prior to filing bankruptcy. They are completely screwing all of their contractors and taking everything away from our contract that we just fought so hard for that they negotiated in "good faith" and immediately after paid out these bonuses and presented a publicly admitted "prepackaged bankruptcy". What would possibly give the judge in Delaware legal grounds to honor this? Please help I don't understand....Read More
I have 3 projects with the same GC for the same company 24 hour fitness USA, all the buildings are being leased by 24 hr fitness, so how do we let them all know we are filing a lien. Property Owner, GC and 24 Hr. fitness. Also, we got legal documents from a law firm that states that 24 hr fitness is filing bankruptcy....Read More
I have questions to ask an attorney about bankruptcy. A company i sell declared bankruptcy. Bankruptcy court wants me to return a payment made to me. Paid to me in the final 90 days prior to that company filing. Bankruptcy court has set a trial date for 9/22. I need to speak with someone that can help me with this matter....Read More
We are a millwork sub in Texas who still have approximatly 8k due on a job that is completed. Third month notices will be due on 9/15. We received communications from a firm that says that the GC is filing bankruptcy and that 17 of our fellow subs are hiring them to collect their money. If this is true and the GC files bankruptcy, does that change the owner's obligation to pay off any lien we file? The firm says the owner will just 'bond off' the lien and we won't get paid....Read More
TexasBankruptcyBonding Off LienMechanics Lien
I need to file a lien on a car for work I did . Will I be able to get a title to the car...Read More
North CarolinaBankruptcyMiller Act
Hey there, I am looking at potentially utilizing your services but I am rather new to the pre-lien process and would love to get in touch with someone to better understand. I have watched your very useful videos and read the FAQs. I would like to discuss the risk attached to the process. What are the collection rates that you have seen in the past..etc..Would you be able to give me a call?...Read More
We hired a shell contractor that filed a chapter 11 before finishing the job and/or billing us and learned he stopped paying his trades a while back. 4 trades did not file NTO's and we want to pay them and then settle the remainder with the shell contractor. The contractor wants us to pay them what is owed so they can put the money in the pot and settle with the trades they have to. Basically these small vendors are either going to get pennies on the dollar or nothing at all. I want to pay them and give the shell contractor the receipts and releases with their remaining monies. Can we legally do that or just the vendors smart enough to file NTO's. ...Read More
Can I file a Mechanics Lien with a company that has already filed for bankruptcy and settled the case? Our work was never completed, we were supposed to return to complete it when they got to a certain stage and then they filed for bankruptcy. The property is now in escrow. The Owner was also the General Contractor....Read More
CaliforniaBankruptcyMechanics Lien
I have a contractor in Texas that wants to use a Masters lien waiver to close out the job/ please let me know your thoughts on this/if the construction company goes bankrupt with unpaid invoices what happens. Thank you for your Time...Read More
TexasBankruptcyLien ReleasesLien Waivers
I'm a subcontractor working on a Tenant Improvement job. We have completed the job however did not get paid. The tenant filed for bankruptcy in May 2020 and we proceed to file a Mechanics Lien against the property owner. The property where the job was performed is in Santa Clara County, California. Our vendor Levelset filed the lien here. However, the property owner is a Delaware corporation. Is there anything we need to do within the Delaware jurisdiction? ...Read More
CaliforniaBankruptcyMechanics Lien