Can I sue my contractor even though he declared bankruptcy?

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Can I sue my contractor even though he declared bankruptcy?

In 2007 we put a room addition on our home. We paid in full the contractor and I have all contracts and receipts. He did not pay the plumber or lumber yard for materials purchased with the money we gave him. We were threatened that a lien would be put on our home but after speaking with our contractor and his lawyer it was assured the debt would be paid and it was to the plumber – that has been paid. He only paid off half of the debt to the lumber company then declared bankruptcy. We realize we’ll have to pay off the remaining debt to the lumber company but can we now sue the contractor?

Asked on December 11, 2010 under Real Estate Law, Indiana

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Since the contractor filed bankruptcy, you won't be able to file a lawsuit against the contractor.  However, if you are listed as one of the creditors, depending on the type of bankruptcy that was filed, you may be able to get repayment of some of the debt.


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