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Re:Arbitration Award from Contractors State License Board Arbitration P
It's most likely dischargeable, but, he's likely to have a problem with his
bond. All contractors have to post a bond with the State, I think the
minimum is $10K. I would definitely notify the claimant of the BK, ASAP,
but if the claimant knows what they are doing, they will eventually make a
claim on the bond, which the bonding company will pay. Then the bonding
company will cancel the bond, if your client does not repay them, and
without the bond, your client will have his contractor's license suspended.
I had a similar case about 3 years ago, and the claimant, after getting
notice of the BK did not make a claim on the bond, and just went away, but
that was pure luck, I think. At least the BK will muddy up the waters for a
month or two while your client figures out how to pay the award, if he wants
to keep his license in good standing.
-Jeffrey B. Smith
CURD, GALINDO & SMITH, L.L.P.
301 East Ocean Blvd. #1700
Long Beach, CA 90802
(562) 624-1177
(562) 624-1178 fax
(310) 993-6560 cellular
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