if the guy goes chapter 7, then he is released of his debts, i do not particularly know how this works with retainage, though i should:
down here in Texas, a company i worked for folded and filed bankruptcy. If it's the same wherever you are, the court will send you letters as if you are a creditor, and you are invited to the bankruptcy hearings. i would assume that there would be someone there who could explain your rights as they pertain to the money owed you by the bankrupt party....
greg
