Construction company halts work despite overpayment

There he files his insolvency.

The general contractor does not have to go to the district court himself - any creditor can also file an insolvency petition. If insolvency is opened, an administrator comes into play. What when how far the administrator can reclaim from whom is too much for the general medical lawyer. I do not see any real relief for you upon reaching the stage of "settlement," even if there is movement again in the construction site.

Obviously, the lawyer has cost a lot of money so far.
Nevertheless, I believe that you urgently still need a good lawyer to stand by your side. I don't think doing such things alone in the current situation is a good idea.

Our lawyer once said that if he files for insolvency after the settlement agreement, he will get into serious trouble. The relief was actually only very short-lived, the trouble continues. Nevertheless, we are happy that the roof framework is almost finished. On Monday, I will discuss the further procedure with our site manager.

Creditors can also file for insolvency.

At first, everything is on hold. An insolvency administrator is appointed. After that, everything is open. The task of the insolvency administrator is damage limitation – not for you – but for the company GU. So collecting funds (here from subs, retainages from clients, submitted and unpaid invoices), with a lot of luck completing the construction phase, e.g. your roof structure so that the invoice has to be paid. How retainages are handled in this case I do not know.

What kind of trouble is the GU supposed to get according to your lawyer?

He said that if the BU enters into a settlement and does not fulfill it or knows that it cannot fulfill it, this would be settlement fraud and delayed insolvency. This would also end his managing director activity for his second company and in the event of claims for damages we would have claims on his private assets, unless he has already transferred them to his wife.