Understanding Payment Disputes in Bankruptcy Between Project Participants During and After Completion of Construction Projects
Litigation attorneys James Chivilo, Richard Bixter and Gregory Meeder authored an article in Pratt's Journal of Bankruptcy Law about payment disputes in bankruptcy between project participants during and after completion of construction projects. Due to the prohibition on seeking payment from a debtor in bankruptcy—called the automatic stay—a bankruptcy filing by a single construction project participant can cause a chain reaction, leading to financial distress, impacts to project payment systems, project completion schedules and/or bankruptcy for other participants. This article discusses often-overlooked strategies that project participants can use to address preference demands.
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