Legal Question in Construction Law in Colorado
Home under warranty and builder files bankruptcy
We have a 1 year Limited Warranty for a home we had built 7/31/08. Our builder has filed Chapt. 7 Bankruptcy. We discovered a water leak along the foundation prior to notification of the bankruptcy. The builder evaluted the problem and a week later we were notified that they filed bankruptcy. Will the bankruptcy honor our warranty? Are there any steps we need to take to ensure the bankruptcy does not overlook our claim under our warranty?
2 Answers from Attorneys
Re: Home under warranty and builder files bankruptcy
You need to contact a bankruptcy attorney to determine if there are any options. Good luck.
Re: Home under warranty and builder files bankruptcy
You probably will not receive warranty service from your builder after a chapter 7 bankruptcy, however you are not completely out of options. You may be entitled to warranty service from a subcontractor or material supplier or manufacturer. You may also be entitled to make a claim for damages through the bankruptcy or even around the bankruptcy by pursuing a claim against the builder's insurance policy.
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