Construction, like all business, has risks and rewards. Most licensed contractors do good work and complete jobs even if unexpected events mean the job is no longer profitable. When a job goes bad, really bad, the contractor’s license can be in jeopardy. The purpose of a contractor’s license is twofold: first, to establish a standard of competence and second, to create a system of accountability.
Two of the biggest problems contractors encounter are difficult customers and injury. Unfortunately, if you work with the public you soon learn some customers have unrealistic expectations. In fact, some are never satisfied. Construction requires the use of heavy equipment, power tools, lifting, cutting, and climbing. The truth be told, even the most skilled craftsman is at risk for injury. Needless to say, a serious injury can leave the contractor unable to complete a job on schedule.
A contractor’s license can be suspended for failure to pay a construction related judgment or settlement. That means if a contractor is sued by a customer the stakes are high. Unless the contractor wins the suit, he or she must be prepared to either pay the claim or agree to make payments to satisfy the claim. If a contractor is injured and unable to work construction, things get behind and customers get upset. At the same time, contractors are people with personal bills to pay. This is where bankruptcy can come in.
The bankruptcy laws are the laws society provides to allow the honest but unfortunate person to have most debts forgiven. This means a bankruptcy can forgive a non-governmental construction related judgment assuming the job was bid in good faith and the contractor intended to do the work when the money was paid. That’s not all, bankruptcy can forgive some types of governmental debts and can establish a payment plan for governmental debts that are not forgiven. Bankruptcy can forgive (or establish a payment plan) for most debts so you can reinstate your contractor’s license quick and get back to work. Bankruptcy can also help get your driver’s license back.
If you are a contractor with construction related claims, lawsuits or judgments you are unable to pay, bankruptcy may be your best option. At the Law Office of Michael Primus we have helped thousands of clients get out of debt, stop wage garnishments, and start fresh through bankruptcy. If you live in Contra Costa, Alameda or Solano counties and have debt problems, contact us for a free in-office consultation. We have offices in Walnut Creek, Antioch, and Hercules.
References
Thomas 355 B.R. 166 (NDCA 2006)
Bertuccio 414 B.R. 604 (NDCA 2006)