November 2013 Archives

What happens when change orders are not in writing?

Many construction contracts provide that change orders (additions or subtractions to the original construction scope) must be in writing. While it is clearly recommended that a contractor or subcontractor obtain change orders which are signed by the owner, what happens if changes aren't in writing? Can the contractor or sub-contractor still obtain payment? Can the owner still obtain a credit? While the answers to these questions aren't as simple as yes or no, it is possible for both to occur. The Court will consider a number of issues when determining whether the change order is enforceable.

Debt Limits for Chapter 13 Bankruptcy

According to section 109 of the bankruptcy code, you (or you and your spouse jointly) are generally ineligible to file a Chapter 13 Bankruptcy if your unsecured debts (i.e. credit card debt, medical bills, taxes, student loans) are more than $383,175.00 or if your secured debts (i.e. mortgages, car loans) exceed $1,149,525.00. If your debt exceeds these limits, unfortunately, the only bankruptcy that you can file, which permits repayment of debt (i.e cure of mortgage debt), is a Chapter 11 Bankruptcy.

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