I signed a contract with a remodeler on 6/1/10 to remodel a bathroom. At that time I paid 50% of the contract , $5200, to get the job started. I have just found out that on 6/29/10 he started sending out letters of insolvency. He was supposed to be bonded. Is there any way for me to get any of my money back and what should my first step be?
1 Answer from Attorneys
Speak with the contractor to discern what his intentions are with your project. If he intends to do the job, he should have started by now. If he has not started, then you need to file a claim with his bond company and file a complaint to get your money back, and be sure to include in your complaint a statement that he was holding this money in trust. And if he doesn't have a bond company, then also include a statement that he committed fraud, by saying he had a bond when in fact he did not and that you relied on this untrue statement when you agreed to pay him the $5,200.(This is to set the stage for a complaint to determine that his debt to you is not dischargeable in a bankruptcy case.) His creditors may need to file a Chapter 7 or a receivership on him. I think it would be worth the money for you to confer with a local attorney experienced in creditors rights before you start any bond claim or legal proceeding. Ask your county bar association for a referral to such a person. Good luck.