In the middle of a build and pool company files bankruptcy..
- Thread starter curls
- Start date
Re: In the middle of a build and pool company files bankrupt
Welcome to TFP!
That can be a difficult situation. Hopefully you haven't paid them too much already. You want to keep track of how their bankruptcy filing is proceeding. Make sure you get listed as a creditor with the court, so the court will keep you notified of what is happening. In most cases you are kind of stuck until the court rules on their proceeding. Until then you don't know if your contract is still in force or not. The odds are that you will end up needing to hire someone else to finish your work, and not see anything further from the original company. However, there is a small chance the original company will emerge from bankruptcy and finish, but it doesn't usually come out that way.
Welcome to TFP!
That can be a difficult situation. Hopefully you haven't paid them too much already. You want to keep track of how their bankruptcy filing is proceeding. Make sure you get listed as a creditor with the court, so the court will keep you notified of what is happening. In most cases you are kind of stuck until the court rules on their proceeding. Until then you don't know if your contract is still in force or not. The odds are that you will end up needing to hire someone else to finish your work, and not see anything further from the original company. However, there is a small chance the original company will emerge from bankruptcy and finish, but it doesn't usually come out that way.
KenGood
0
- Jul 12, 2013
- 290
Re: In the middle of a build and pool company files bankrupt
I think it may depend on whether they are filing a reorganization bankruptcy or a liquidation. If it is a liquidation, then you are probably stuck looking for a new contractor with the possibility of having to pay twice for the work already done if liens have been filed by sub-contractors. This would be the worst possible result. If he had a construction bond in place file a claim against it. If it is a reorganization, I read somewhere that 75% of these cases are dismissed for failing to make payments so that is not looking good either. Terrible situation. Best of luck.
I think it may depend on whether they are filing a reorganization bankruptcy or a liquidation. If it is a liquidation, then you are probably stuck looking for a new contractor with the possibility of having to pay twice for the work already done if liens have been filed by sub-contractors. This would be the worst possible result. If he had a construction bond in place file a claim against it. If it is a reorganization, I read somewhere that 75% of these cases are dismissed for failing to make payments so that is not looking good either. Terrible situation. Best of luck.
Re: In the middle of a build and pool company files bankrupt
Not a good situation to be in, even under reorganization, subcontractors file liens immediately and bring the pool builders cash flow to a halt. I would ask for Lien Releases for all work performed up to this point, which will protect you from having to pay twice. Personally, I would not part with any more money with the current builder, although you may be able to make arrangements to pay subcontractors directly to complete the pool, and, again, obtain Release of Lien upon making payment.
Not a good situation to be in, even under reorganization, subcontractors file liens immediately and bring the pool builders cash flow to a halt. I would ask for Lien Releases for all work performed up to this point, which will protect you from having to pay twice. Personally, I would not part with any more money with the current builder, although you may be able to make arrangements to pay subcontractors directly to complete the pool, and, again, obtain Release of Lien upon making payment.
