A contractor built a $196 million hospital tower. The hospital filed Chapter 11 before it opened. The contractor is owed $17 million and is the second largest unsecured creditor. This episode explains how contractor claims work in bankruptcy, why unsecured means you get paid last, and the 7 things every contractor must do to protect against client bankruptcy.
April 10, 2026 2 min read
When Your Client Goes Bankrupt 2026: The $17 Million Contractor Nightmare and 7 Ways to Protect Your Business Before It Happens
A contractor built a $196 million hospital tower. The hospital filed Chapter 11 before it opened. The contractor is owed $17 million and is the second largest unsecured creditor. This episode explains how contractor claims work in bankruptcy, why unsecured means you get paid last, and the 7 things every contractor must do to protect against client bankruptcy.
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