Thursday, February 08, 2007

The Guaranty Fund

Massachusetts has a wonderful resource for homeowners who have obtained judgments against contractors. If the contractor does not pay the judgment after the homeowner makes a reasonable effort to collect, or if the contractor flees the jurisdiction or the contractor files for bankruptcy, the Office of Consumer Affairs and Business Regulation (OCABR) administers a fund that will pay up to $10,000.00 of the homeowner'(s) damages. The homeowner must apply for the fund within six months of obtaining a judgment. For some homeowners, this will fully satisfy their claim. For others, it will help cover the cost of litigation. Once the money is paid out from the fund, the OCABR goes after the contractor for reimbursement. Check in your state to see if this type of resource is available.

8 Comments:

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What is considered a reasonable effort to collect?

 
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