Bankruptcy and the Construction Sector Part 1
Construction industry professionals have many challenges. Whether it’s dealing with potential project delays, finding reliable workers to combat the labor shortage problem, or avoiding costly OSHA citations. One potential problem a construction professional never wants to encounter is an owner that cannot compensate them for their services. In this six-part article, we will give you a brief education on bankruptcy law and the construction industry.
Bankrupt Entities and Construction Lawyers
Dealing with a bankrupt entity is one of the most dreaded experiences for anyone in any industry to encounter. Unfortunately, it’s a common occurrence in the construction industry. If you are owed unpaid compensation for your hard work, you need the legal services of a Brandon construction attorney. When you speak with a lawyer from Cotney Attorneys & Consultants, they will navigate you through the complex process pertaining to bankruptcy cases. For more information, contact a Brandon construction lawyer today.
Two Most Common Ways to File for Bankruptcy
Bankruptcy is typically governed by federal law. The business, person, or entity filing for bankruptcy is called the “debtor” and the entity requesting compensation is called the “creditor.” A debtor files for bankruptcy for a clean slate and the debtor’s assets are distributed to the creditors. There are many ways a debtor can file for bankruptcy within the federal Bankruptcy Code. In the next section, we will focus on entities that either liquidate their assets under Chapter 7 or reorganize their assets under Chapter 11.
Contact An Experienced Construction Attorney
If you are involved in a project and have been served with a bankruptcy petition, contact an attorney who is knowledgeable in federal bankruptcy law and who also understands the construction process. As we will discuss in section three of this series, you may qualify as a creditor if you file a claim. In the fourth, fifth, and sixth sections, we will discuss the impact a bankrupt entity can have on a construction project.
If you would like to speak with one of our Brandon construction attorneys, please contact us today.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.