Contractor Bankruptcy, Reorganized Under Subchapter V
One general contractor who stops paying can strand your crew, your suppliers, and three trucks' worth of financed equipment at once. Subchapter V bankruptcy freezes the collection fight the day we file and turns the mess into a single plan you can carry while the jobs keep moving.
Finish the job, keep the shop
In construction the money shows up late and the bills show up on time, so a single unpaid draw can cascade through payroll, material accounts, and equipment notes before anyone catches it. Subchapter V reorganizes that backlog into a plan built around the contracts you can still complete.
Contractor debts we restructure
- Loans on excavators, trucks, and heavy equipment
- Open balances at lumberyards and material suppliers
- Money owed to subcontractors and trade partners
- Business lines of credit drawn down to make payroll
- Surety and bonding exposure on open jobs
- EIDL advances and other SBA-backed loans
How Subchapter V helps contractors
- Hold onto your iron and hold onto your crew
- Halt supplier and lender collection suits as the case opens
- Reset equipment notes to payments a working schedule can meet
- Sort out bonding and retainage inside one proceeding
- Stay at the helm and close out the contracts already in progress
How it works
A clear path for contractors.
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1
Step 1 of 4
Free consultation
We go through your equipment loans, your open supplier accounts, and what is still owed to you on finished work to see if Subchapter V is the right tool for the company.
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Step 2 of 4
File and stop collections
Filing drops the automatic stay in place, so suppliers and lenders have to quit suing and calling while the crews stay on the job.
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3
Step 3 of 4
Build the plan
We map out a three-to-five-year plan around the draws and receivables the business can realistically collect.
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Step 4 of 4
Keep building
After confirmation you fund the plan from ongoing work and keep the equipment the company runs on.
Common questions about Subchapter V for Contractors
Can I keep my bonding capacity?
Bonding is often the hardest piece of a contractor case, because it turns on what your surety decides rather than what the court orders. A clean reorganization can actually reassure a surety by showing a funded path forward, so we bring your bond agent into the plan early instead of surprising them.
Can I finish my current contracts?
Yes, and staying on the job is the whole point. As the debtor in possession you keep signing pay applications, running the crews, and closing out the work already under contract.
What happens to my equipment and trucks?
You keep the machines the jobs depend on, and we stretch the notes on them into payments the schedule can carry, so nothing critical rolls back to the lender in the middle of a project.
What about mechanics liens and retainage?
Lien claims and held-back retainage are usually the messiest part of a build, because everyone on the job has a claim against everyone else. Subchapter V pulls those disputes into one forum, brings the retainage you are owed into the estate, and lets the plan handle the rest instead of a separate lawsuit for every lien.