Owner/developer bankruptcies – Don’t get soaked
Abstract: Bankruptcy is an unfortunate fact of life. In the current economic climate, construction companies may be faced with project owners or developers that file for Chapter 7 (liquidation) or Chapter 11 (reorganization) protection. This article offers some tips to help contractors maximize their chances of getting paid. It explains how to obtain a security interest in the project, get paid from assets that aren’t part of the bankruptcy estate, and protect the right to payment for current work.