Judge declared for my side in less than 5 mins Of course the Attys fees were added to the judgement 

Maybe have the contractor include a simple declaration on the receipt that it's paid in full therefore the contractor will not place a lien. 

when you sell and carry, you sell the property and you have an option to either declare the gain that year or do an installment sale option (which isn't really worth it because your sale is tax free due to homestead). 

Some of the more commonly seen situations are: borrower has sold the house; borrower has declared bankruptcy and has actually filed paperwork to receive the automatic stay of all legal actions; forbearance or loan modification is being put into place; borrower has provided the judge with some reasonable defense motion that requires the lender to re-start the process.

Hopefully you do have a mortgage or deed of trust (which ever is used in your area) filed at the county courthouse showing your loan.If they declare bankruptcy it can affect your ability to recover your money.Are you willing to consider the $110K a gift?

If you have already been warned by a family member, you may be advised to either get a declaration that he is fit to make this decision or walk away.  

In NJ if you provide emergency response shelter in Ocean County (home of Snookie) you do not have to declare the income generated...

But now this project is in the millions and if crap hit the fan and I couldn't work out a loan modification, I would have to declare bankruptcy.  

Landlord declares there are no damages to the dwelling unit, all systems and appliances provided are operating and functioning normally, and there is no visible sign of mold or pests on the Premises. 

And you should still declare what you received and properly pay any taxes due.