Will Filing Bankrputcy Erase a Court Judgment?

Full question:

A THE BOND COMPANY NOTIFIED THE CALIFORNIA STATE CONTRACTORS BOARD AND THEY NOTIFIED ME THAT MY LICENSE WOULD BE SUSPENDED IF THE MATTER IS NOT CLEARED UP BY JULY 7TH 2011.I'M FILING FOR CHAPTER 7 BANKRUPTCY AND NEED TO TO KNOW IF THIS WILL SATISFY THE BOND COMPANY AS PAYMENT IN FULL AND IF SO WILL THEY HAVE TO SEND A NOTICE TO THE CONTRACTORS BOARD TO RELEASE ME.I'M FILING FOR PERSONAL BANKRUPTCY AND THIS IS BUSINESS RELATED. HOWEVER ON THE AGREEMENT IT SAYS THAT I AGREE AS A FIRM AND INDIVIDUALLY TO FULLY INDEMNIFY THE SURETY CO. THIS IS A CORPORATION. MY WIFE AND I SIGNED THIS. HOWEVER SHE IS DECEASED.WILL BANKRUPTCY MAKE THE SURETY COMPANY HAVE TO SEND THE CONTRACTORS BOARD A NOTICE THAT JUDGMENT IS SATISFIED THEREBY SATISFYING THE CONTRACTORS BOARD? FORMER BOND COMPANY PAID A LOSS OF $1000.00 AND $2565.99 FOR THEIR ATTORNEY FEES. TOTALING $3565.99. IT WAS PAID OUT TO A MATERIAL SUPPLIER WHO WENT AFTER THE BOND.

Category: Bankruptcy
Date: 04/07/2025
State: California

Answer:

No, it will likely be your responsibility to show the board that the judgment was discharged in bankruptcy. We suggest contacting the board to inquire exactly what their requirements are to prove the matter has been resolved.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What is the statute of limitations on a contractor's license bond in California?

In California, the statute of limitations for filing a claim against a contractor's license bond is generally two years from the date of the incident that caused the claim. This means that if a party believes they have a valid claim against the bond, they must act within this timeframe to seek compensation. Always consult a legal professional for specific advice regarding your situation. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

What will the CSLB do to a license if the bond is not renewed or is cancelled?

If a contractor's bond is not renewed or is canceled, the California State Contractors Board (CSLB) may suspend the contractor's license. The contractor must maintain an active bond to legally operate. Failure to do so can lead to penalties, including the inability to bid on projects or perform work until the bond is reinstated. It's crucial for contractors to keep their bonds current to avoid such issues. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

What does license is under employee worker bond suspension mean?

When a contractor's license is under employee worker bond suspension, it means that the contractor's bond has been suspended due to issues such as non-payment or failure to meet bond requirements. This suspension prevents the contractor from legally operating until the bond is reinstated. It is essential for contractors to address any bond issues promptly to avoid disruptions in their business operations. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

What is contractor bond suspension?

Contractor bond suspension occurs when a contractor's surety bond is temporarily invalidated, often due to non-compliance with bond requirements or failure to pay premiums. During this period, the contractor cannot legally perform work or operate under their license. To lift the suspension, the contractor must resolve the underlying issues with the bond. It's important to maintain compliance to avoid such suspensions. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

Can a contractor work with a suspended license in California?

No, a contractor cannot legally work with a suspended license in California. If a contractor's license is suspended, they must resolve the issues leading to the suspension before they can resume work. Operating with a suspended license can result in further penalties, including fines and potential criminal charges. It is crucial for contractors to maintain their licenses in good standing. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*

Can you lose your contractor's license in California?

Yes, a contractor can lose their license in California for various reasons, including failure to maintain the required bond, violating licensing laws, or being found guilty of misconduct. The California State Contractors Board (CSLB) has the authority to revoke a license if the contractor does not comply with legal obligations. It's important for contractors to adhere to all regulations to avoid losing their license. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*