We are having our family bathroom remodeled and have run into trouble. It was a gut job and I chose a contractor who was highly recommended through my local moms FB page. Initially he told us it would take 2-3 weeks, however, we are now 7 weeks into it, and he just told my husband last night that he is laying his workforce off and is unable to finish the job. Technically, he told DH that if we would buy all the remaining materials ourselves instead of paying him the remainder of the contract, he would get around to finishing it all himself at some point (TBD). They have done a fair amount of work - framing, tub, drywall, most electrical - but it is far from finished. Honestly not sure what to do. If we walk away, we would have to hire new contractors to finish the job and we don't really have the extra cash to do that. And even though he is clearly violating our contract, we aren't likely to seek legal action due to costs involved in that. Also, I'm 26 weeks pregnant and am just dying for this to be done so I can focus on the arrival of DD2. He is coming over tonight to meet with us to discuss a plan. Honestly I don't think he is out to scam us, but I have a hard time believing he will be able to finish the job in a timely manner based on the history. Any thoughts or advice? I am physically sick over all of this and didn't sleep at all last night! 
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That doesn't seem like much of a plan to me- you are still paying for everything and you have no idea when your bathroom will be finished. He needs to offer you better financial terms and a solid timeline for getting everything finished, or offer to pay for another contractor who can actually get the job done in a timely fashion.
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@caterw: Exactly, but even if he does rework the contract in terms of timeline/financials, I'm not sure I trust him at this point to follow through. I feel like we are just going to have to eat the costs.
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@GreenThumb: If he's highly recommended, then he has a great reputation and so he has something he wants to protect! I would just say to him that he came highly recommended on Facebook from other local moms that you really trusted, but that his plan isn't acceptable and that he has to fulfill the contract (or find another to make things good). Just mentioning Facebook should be a good reminder that he has a reputation to protect (vs outright threatening a negative review, which rarely goes well).
Good luck!!
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@mrbee: Thanks MrBee. He didn't show up for our meeting tonight and didn't respond to DHs call or text to reschedule. It seems like his company is tanking, so I'm not sure losing his reputation online is going to make much of a difference. But I think I might reach out on the FB moms group and see if anyone else is going through something similar (without mentioning his name first). Maybe we can band together to figure out a resolution since I know he had other ongoing projects that he was trying to bail on.
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I am so sorry you are going through this.
I forget all the details, but isn't there is a process for filing a lien on the business (via small claims court, maybe?)--I don't think it's supposed to cost much to do. The earlier the better, because you want to be close to the front of the line if they liquidate the assets and start paying the liens. Can you consult the legal bees for better advice on this?
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Definitely check your small claims court fees. I remember looking into them once and they were based on the amount you are trying to get (in California). If I remember correctly it was $50 for under 5k. It's worth looking into especially if he's going MIA
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Did you pay the contractor for all of the work up front?
I'd try to work it out with the contractor, but given that he bailed on your last meeting, I'd also get other contractors out ASAP to give you a bid for finishing the job.
I also think it's fair to put on the FB moms group that you are having issues with xx highly recommend contractor and are hoping to work through it, but want to caution other moms.
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You need to be looking for a new contractor.
I'm not clear on how finding a new one will cost extra money though. Did you pay the first guy in full? Hope not. Small claims is not that expensive I'd look into that if he has been paid but not completed the work.
Sorry.
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