My question involves collection proceedings in the State of: Ohio
Contract signed for a home addition in June, 2017 with a construction company LLC. Work stopped in Dec. 2017 due to cold weather. Informed by LLC owner in April, 2018 that the company is going into bankruptcy. About $46,000 in payments to company in excess of work performed. (stupidity acknowledged)
To date, bankruptcy has not been filed, per the firm's bankruptcy lawyer. Law firm confirmed it is business Chapter 7 they are going for.
Assuming bankruptcy is not filed soon (or ever): Would it make sense to file a breach of contract lawsuit, considering the LLC is probably insolvent and I would likely get little to nothing out of it? But could a lawsuit be beneficial for potential future actions? It seem like at least I could get some insight to the accounting on my project and a quantification of my loss through a lawsuit.
There are potentially elements of fraud that could be directed to the LLC owner personally. (He was arrested in May for another project for which he allegedly did no work, hard to believe he would fail the "just one nail, no jail test")
I would not be surprised if the LLC owner ends up filing personal Chapter 7 eventually which would further eliminate any chance for payment.
I did talk to a lawyer early in this case; he was not encouraging about a good outcome.