Legal Question in Bankruptcy in Maryland

Re: Chapter 11

There are several avenues of recourse depending upon the facts 410-484-4900

Re: Chapter 11

Your contract will govern most parts of your options. Frequently there is a "flow down" provision that says you only pay the sub when you get paid by your prime. If you don't have that type of contract, then you'll need to look for other options, including mechanic's liens, payment bonds, etc. You also need to make sure that you recover whatever you can from the bankrupt entity -- You should definately have an attorney review this ---- ($80k is worth a couple of bucks on attys fees!).

Move fast b/c there are strict time deadlines on mechanic's lien issues.

You may also want to have someone review the sub-contracts that you use to see if you can make them better for you.

Please feel free to call if you want to chat with an eye toward seeing if my firm can be of any assistance in these regards.

Re: Chapter 11

You need to look at your contract with your subcontractor. It may have a pay-when-paid provision that might help you, but most likely you owe for the work. You may be entitled to a mechanic's lien or other equitable remedy against the customer, and you may be protected if the customer posted a payment bond.