Builder Says ..not Enough To Finish

What is the name of your state? TEXAS..
BUILDER TOLD US ... SORRY .. THERE IS NOT ENOUGH MONEY TO FINISH.. I UNDER ESTIMATED JOB...

NOW BEEN TOLD IN BANKRUPTCY... AND CONTRACTORS HAVE $100,000 NOT PAID
ORIGINAL HOME BUILDERS LOAN FROM BANK 266,000....

DEADLINE IS WAY PAST DUE..

HOUSE IS 75 % COMPLETE..

BEEN TOLD WE WILL LOOSE THE HOUSE, LAND AND STILL OWE THE CONTRACTORS THAT WERE NOT PAID..

WHAT KIND OF LEGAL ACTION DO WE TAKE...WHAT SPECIALTY LAWYER DO WE NEED.
WE HAVE TALKED TO A BANKRUPTCY LAWYER WHO WANTS 200/HR .

CAN THE CONTRACTORS AND THE BANK COME AFTER OUR SMALL BUSINESS.?

WE ARE BOTH NEAR RETIREMENT AGE..
CANNOT FIND ANY INFORMATION ABOUT THIS BUILDER.What is the name of your state?

There is some info on researching builders here: HADD download page: http://www.hadd.com/downloads.php You have to register to download but it's free. Also the home pg, hadd.com go to State Chapters as there is one in TX. There are links to many state agencies you could research the builder from. I highly recommend filing your complaint on same site. Their TX chapter is very active. I have read of several builders going under like this in various states just in the last few months. HUndreds of homeowners left with losses and no house, and "get in line" for anything when they declare bankruptcy, too. The banks always seem to be first to get paid if anyone does. They also leave subs and construction suppliers unpaid as you found out, and that means liens on the house if you do get it. GOOD LUCK!

Who has been handling your construction draws? Have they been getting lien waivers from the subs, materialmen and general contractor in exchange for the draw checks? Is this YOUR construction loan that is in default? Who owns the land?