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  1. #1
    Join Date
    Apr 2008

    Post General Contractor Filed Protection Under A Plan Of Reorganization

    My question involves business law in the state of: California
    We supplied material for remodeling a bathroom through a contractor. We sent out a lien notice to both the homeowner and the contractor after we delivered the material at end of February. There is over $3000 still due on the material. The contractor says they have filed protection under a plan of reorganization and were supposed to pay us by last week, but haven't. Should we file suit against the contractor to recover the balance or try to recover from the homeowner (who paid the contractor in full) by filing the lien? Help!

  2. #2
    Join Date
    Sep 2005
    Behind a Desk

    Default Re: General Contractor Filed Protection Under A Plan Of Reorganization

    The bankruptcy would result in a stay against litigation, requiring you to either seek relief from the stay or to make your claim through the bankruptcy court. As you note, you have the option of trying to collect against the homeowner, who one might hope hasn't already paid the contractor (because it's not pleasant to have to pay twice). Talk to your lawyer.

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