What to do if our general contractor told us he was bankrupt and walked off our job?

UPDATED: Oct 22, 2012

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What to do if our general contractor told us he was bankrupt and walked off our job?

We were liened by subcontractors who came to us for money, yet the GC continued to work elsewhere and a month later registered a new company name. Then 3 weeks after that he filed for bankruptcy for his original company. We are listed as creditors in his bankruptcy filing but he also claims that we owe him money, which he never billed us for nor do we know what work he claims this payment is for. Can we be held responsible for this money? Can he subtract this from our proof of claim? Also, the time fixed for filing claims was last spring. We just received another notice for fixing time for filing claims 3 months from now. Do we have to file another proof of claim?

Asked on October 22, 2012 under Bankruptcy Law, Illinois


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

I suggest that you consult with a bankruptcy attorney about the matter you have written about and in submitting a claim to the bankruptcy court as a creditor. You should also see if your contractor is bonded and if so, you might consider getting leave of the bankruptcy court to make a claim on the bond. Most likely any claims of the contractor against you may not be pursued by the trustee.

From what you have written you do not have to file another proof of claim unless you have greater damages as to the contractor that you did not initially list.

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