Know Your Rights: Defenses for Creditors When a Construction Project Partner Goes Bankrupt

Construction attorneys James Chivilo and Greg Meeder and bankruptcy attorney Rick Bixter wrote an article published in the American Bar Association’s Forum on Construction Law publication, Under Construction. The article explains how a single construction project participant filing for bankruptcy can financially impact the entire project, especially if the bankrupt party chooses to pursue preference demands – demanding payments made to third parties by the bankrupt party in the 90 days prior to filing for bankruptcy be returned. The article then goes on to outline possible defenses non-bankrupt parties involved in the project can take to reduce or even eliminate liability in connection with preference demands.

READ: Know Your Rights: Defenses for Creditors When a Construction Project Partner Goes Bankrupt