As a result of the cyclical nature of the construction industry, Harrison Law Group has necessarily become specialized in representing creditors in bankruptcy cases.
The primary type of bankruptcy which impacts construction related firms is Chapter 11 bankruptcies. Chapter 11 bankruptcies are called "reorganizations," as the debtor seeks to avail itself of the provisions of Chapter 11 of the Bankruptcy Code to reorganize its debts so that it can continue operating its business. Chapter 7 bankruptcies, on the other hand, are called "liquidations" as the debtor seeks to liquidate its assets and close its business.
Of particular importance to creditors in Chapter 11 bankruptcies are (1) to what extent will the debtor satisfy outstanding debts owed to creditors and (2) to what extent will the bankruptcy impact payments already received by the creditor.
The unique character of the construction industry and the relationships and interdependence of the parties in the industry provides many opportunities to obtain payment of outstanding debts. Moreover, the presence of sureties who secure payment to lower tier contractors on construction projects often provides additional opportunities to leverage payment despite the bankruptcy. Finally, the availability of statutory mechanic's lien rights can provide the construction creditor with additional leverage and/or means to secure payment of the amounts owed. The attorneys at Harrison Law Group utilize their construction experience to capitalize on these unique options to aggressively maneuver their clients into the best possible position to maximize their recovery. Whether the representation entails filing adversary proceedings to prosecute claims in the bankruptcy court, lifting the automatic stay to prosecute claims in state or federal court, or defending adversary proceedings or avoidance actions, Harrison Law Group attorneys are well equipped to represent all types of creditors who are forced into bankruptcy court to collect monies owed.