Construction Law Practice Written By Kevin Hudson, Esq.

Category Archives: General Contractor Law

General Contractor Law – Rights and Responsibilities When a Subcontractor Files Bankruptcy

What are a General Contractor’s Rights and Responsibilities When a Subcontractor Files for Bankruptcy?

One critical misconception is that a subcontractor’s bankruptcy means that it is going out of business. A bankruptcy by a subcontractor may actually be the method by which the subcontractor continues to operate. For many businesses, the legal process of bankruptcy may simply lead to a restructuring of debt, under Chapter 11 of the U.S. Bankruptcy Code, and operations rather than liquidation, under Chapter 7. Read More