What options does a subcontractor have to get paid from a contractor?
Question Details: I am a subcontractor who did work for a contractor on a 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 that 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. I'm not sure if I should obtain legal representation at this time or what my next step should be? The time limit has passed to place a mechanic's lien.
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).