Newsroom Author: Mark Moburg

Potential Issues Faced by General Contractors when a Subcontractor Files for Bankruptcy

Bankruptcy is governed by Federal law.  The goal is to treat similarly-situated creditors equally so that one is not treated better than another.  This is achieved either through liquidation of the debtor’s assets or by a plan of reorganization negotiated with the creditors, under which the debtor continues operating. TYPES OF BANKRUPTCY: A general contractor faced with subcontractor’s bankruptcy filing … Continue reading