My pool builder filed bankruptcy in Texas: what happens to my deposit, my pool and the liens (2026)

Short answer: once a builder files, the automatic stay generally stops lawsuits and collection against it (11 U.S.C. §362).^[1] Your path to money becomes a proof of claim (Official Form 410) filed in the bankruptcy case by the deadline.^[3][7][10] A household deposit for work never done can be a priority claim up to $3,800 per person in cases filed on or after April 1, 2025 (§507(a)(7)). The rest is usually unsecured and may be paid little or nothing.^[2] Your house isn't the builder's property, so subcontractor lien deadlines under Texas law still matter. Hold on to any retainage.^[1][5][14]

Why homeowners end up asking this

In a February 2023 r/sanantonio post titled “Pool contractor filed for bankruptcy after I handed him over $60k,” a homeowner asked what to do next. Commenters told the poster to see a lawyer and to confirm the contractor had actually filed.^[15] On X in October 2026, a Dallas user wrote that a friend's builder “ran out of money and walked.”^[16] These are the posters' own accounts, not verified by us, and we don't name the businesses involved.

Step 1: confirm there really is a bankruptcy case

• “We're going bankrupt” isn't a filing. Search PACER (the federal courts' records system) for the company name and the owner's name. Searching by case number is cheaper than searching by party name. PACER charges $0.10 per page, capped at $3 per document, and you're only billed if you run up more than $30 in a quarter.^[11]
• Dallas and Fort Worth cases are usually filed in the U.S. Bankruptcy Court for the Northern District of Texas.^[12] A company files where it's organized or has its main place of business or main assets, so check other districts too.^[9]
• Write down the case number, the chapter (7, 11 or 13), the filing date and whether the company, the owner personally, or both filed.

Step 2: what the filing changes

Step 3: file a proof of claim

1. Get Official Form 410 from the U.S. Courts website or the court's own site.^[10][12]
2. Total what you paid and what you got. Attach the contract, change orders, every receipt or bank record, and photos of where the work stopped.
3. Claim the priority part if it fits. Section 507(a)(7) covers deposits by individuals for services for personal, family or household use that were never provided, up to $3,800 per person.^[2] Ask your attorney how it applies to a partly built pool and to a joint contract with a spouse.
4. File it by the deadline in the court where the case is pending, and keep proof that you filed.^[7]

Step 4: is the debt dischargeable?

A chapter 7 discharge is only available to individuals, not to partnerships or corporations.^[9] If the builder is an LLC or corporation in chapter 7, it doesn't get a discharge, but it may simply have nothing left to pay. If the owner files personally, section 523 lists debts that can be excepted from discharge, including money obtained by false pretenses or actual fraud, and fraud or defalcation while acting in a fiduciary capacity.^[4] Those exceptions don't apply on their own. The creditor has to file a complaint within 60 days after the first date set for the meeting of creditors and win it.^[8][9]

Texas Property Code chapter 162 makes a contractor a trustee of construction payments for the subs and suppliers on your job, and on a residential contract for the owner too. See our trust fund guide.^[13] Whether a particular builder's handling of your money counts as a fiduciary defalcation under section 523(a)(4) is for the bankruptcy court. Homeowners don't always win these cases, so get a lawyer's view before you spend money on one.

Step 5: protect the house from sub liens

• The stay protects the debtor, not you. It covers actions against the debtor and property of the estate. Your home isn't the builder's property. Section 362(b)(3) also lets certain acts to perfect a lien continue to the extent allowed by section 546(b).^[1][5] So unpaid subs and suppliers may still send notices and file lien affidavits against your property under Texas law.
• Keep the retainage. Texas requires an owner to retain 10% of the contract price for 30 days after completion. Read our payment schedule guide and what to do when a sub says it wasn't paid.^[14]
• Check any lien for defects. Homestead jobs have extra contract and notice rules. See how to check and remove a lien.^[14]
• Before you pay a sub directly, get a signed statutory waiver (see our lien waiver guide) and ask your attorney whether the payment could affect the bankruptcy case.

Step 6: finish the pool

• Document the site with dated photos before anyone else touches it.
• Check the permit. Ask the city how an open permit and passed inspections carry over to a new contractor. See our final inspection check.
• Get a written scope from the new builder that lists what's already done. Pay against milestones, not up front. See how to vet a builder.
• If you paid by credit card, ask your card issuer whether a dispute is still possible. Issuers have time limits.
• For more on a builder who stopped before filing, see builder stopped work or walked off.

FAQ

My pool builder filed bankruptcy. Can I still sue them?

Generally not while the case is open. Under 11 U.S.C. section 362(a), filing a bankruptcy petition operates as an automatic stay of most lawsuits and collection actions against the debtor on claims that arose before the filing. Instead you file a proof of claim in the bankruptcy case (Official Form 410). A creditor can ask the bankruptcy court for relief from the stay. Talk to a bankruptcy attorney before you send demand letters or file suit.

Will I get my pool deposit back if the builder goes bankrupt?

Maybe only part of it. Section 507(a)(7) gives individuals a priority claim, up to $3,800 per person for cases filed on or after April 1, 2025, for deposits paid for household goods or services that were never provided. Anything above that is usually a general unsecured claim, paid only if the estate has money left. Some chapter 7 cases are no-asset cases, where unsecured creditors get nothing.

What is the deadline to file a proof of claim?

In a voluntary chapter 7 case, Bankruptcy Rule 3002(c) says a proof of claim is timely if filed within 70 days after the order for relief, with some exceptions. In chapter 11 cases the court sets the deadline. Read the notice the court sends to creditors, or look up the case on PACER, for the exact date in your case.

Can a bankrupt pool builder's debt to me be wiped out?

A chapter 7 discharge is only available to individuals, not to companies, so an LLC or corporation doesn't get one. If the owner files personally, debts for fraud, false pretenses or defalcation while acting in a fiduciary capacity can be excepted from discharge under section 523, but only if the creditor files a complaint and wins. The deadline is 60 days after the first date set for the meeting of creditors (Rule 4007(c)). Texas Property Code chapter 162 makes a contractor a trustee of construction payments, but whether that makes a particular debt non-dischargeable is for the court.

Can subcontractors still put a lien on my house if the builder is bankrupt?

Possibly. The automatic stay protects the debtor and property of the bankruptcy estate, and your house isn't the builder's property. Section 362(b)(3) also lets certain acts to perfect an interest continue under section 546(b). Texas lien deadlines and homestead rules in Property Code chapter 53 still matter. Keep any retainage you held back, and ask a Texas attorney before you pay a sub directly.

Find a lawyer: State Bar of Texas referral service.^[17] Related: builder directory · methodology. Checked October 31, 2026. Something wrong or out of date? Tell us.

Sources

1. 11 U.S.C. sec. 362, Automatic stay (Cornell LII)
2. 11 U.S.C. sec. 507, Priorities, incl. (a)(7) consumer deposits and the Apr. 1, 2025 dollar adjustment note (Cornell LII)
3. 11 U.S.C. sec. 501, Filing of proofs of claims or interests (Cornell LII)
4. 11 U.S.C. sec. 523, Exceptions to discharge (Cornell LII)
5. 11 U.S.C. sec. 546, Limitations on avoiding powers, incl. (b) perfection under generally applicable law (Cornell LII)
6. 11 U.S.C. sec. 341, Meetings of creditors and equity security holders (Cornell LII)
7. Federal Rule of Bankruptcy Procedure 3002, Filing a proof of claim (Cornell LII)
8. Federal Rule of Bankruptcy Procedure 4007, Determining whether a debt is dischargeable (Cornell LII)
9. United States Courts: Chapter 7 – Bankruptcy Basics
10. United States Courts: Proof of Claim (Official Form 410)
11. PACER: Pricing, how fees work
12. U.S. Bankruptcy Court, Northern District of Texas (Dallas and Fort Worth divisions)
13. Texas Property Code ch. 162, Construction Payments, Loan Receipts, and Misapplication of Trust Funds (official text)
14. Texas Property Code ch. 53, Mechanic’s, Contractor’s, or Materialman’s Lien (official text)
15. r/sanantonio: “Pool contractor filed for bankruptcy after I handed him over $60k” (Feb 2023)
16. X, @Ericdweber777 (Oct 2, 2026): “ran out of money and walked”
17. State Bar of Texas: Lawyer Referral & Information Service