What options does a subcontractor have to get paid from a contractor

UPDATED: Sep 30, 2022

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What options does a subcontractor have to get paid from a contractor

I am a subcontractor who did work for a contractor in property preservation. The
contractor has been paid for the job but is now saying they do not have the money
to pay me and want to issue payments for the next 12 months. The owner has
stated they have sold the business but will not give the name of the new owners.
The debt settlement agreement written up lists the old owner personally as debtor
with me and my company as creditor, no collateral is mentioned. I have contacted
the company who issued the work and they have a ‘dispute resolution’ department
looking into it. Not sure if I should obtain legal representation at this time
or what my next step should be? Time limit has passed to place a mechanics lien,
job was in the state of Florida.

Asked on September 15, 2016 under Business Law, Florida


Micah Longo / The Longo Firm

Answered 6 years ago | Contributor

The terms of your agreement with the contractor will dictate.  You likely have a cause of action against the contractor for the money you are owed.  However, it appears as though you'll have trouble collecting, especially if the contractor is broke. Depending on how much money is owed and how liquid the contract is it might be worth pursuing.  You should contact a lawyer as there is a time limitation on these kind of cases.  
(This is not legal advice - you pay for legal advice - this is free).

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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