Legal Question in Construction Law in California

Lein on house, contractor bankrupt

I paid money to my contractor but he did not pay the materials vendor. Now the vendor has lein on my house. He signed contract while having declared bankruptcy which I was not aware of.


Asked on 5/08/07, 3:10 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Lein on house, contractor bankrupt

There was a similar question asked and answered just a few minutes earlier; if the replies are going to the same place, or if you can find the earlier question as answered by Terry Nelson, just let me say I agree with his answer and would suggest one other possibility. That is, if the contract was entered into AFTER the bankruptcy was filed, the contractor probably lacks bankruptcy law protection - the bankruptcy protects him from pre-filing debts, not those incurred later. Sure, he won't have money to pay you, but I believe if this is a Ch. 11 you are entitled to a high priority and I suggest you re-ask your question under LawGuru's bankruptcy law heading and emphasize the bankruptcy aspects of the facts.

I would also say that I think his failure to mention that he was in Ch. 11 at the time of contracting with you may be a fraud and that angle should be mentioned if you re-ask.

I still think you are responsible for the unpaid materials bill, however. My comments only refer to your rights against the contractor.

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Answered on 5/08/07, 4:06 pm


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