Recently, I have had a number of calls from general contractor clients complaining that one or more of their subcontractors have gone broke, leaving a bunch of unpaid suppliers. So what do they do? There are two possible solutions that might work if their owners have personal wealth or the subcontractors are corporations or limited liability companies.
It may then be possible to prove (1) that the owners used payments made to their companies for something other than the payments to their suppliers, or (2) that their companies were not properly organized or maintained separate and apart from themselves.