Legal Question in Real Estate Law in Illinois
Builder Bankruptcy can I break contract
I recently purchased a home and my builder filed for Ch.11. Home has not been built at all. They told me my down payment is safe in a 3rd party account and they are trying to obtain financing to start the home. I want to break the contract and get my down payment back. Can I do this?
2 Answers from Attorneys
Re: Builder Bankruptcy can I break contract
Your contract needs to be reviewed by an attorney to determine if there is a way out of the contract in light of the bankruptcy. Perhaps there were some time restrictions in the agreement. Perhaps a bankruptcy clause is in the contract.
Re: Builder Bankruptcy can I break contract
This is really a Bankruptcy question and I am not a bankruptcy attorney. I almost rejected the question because it is in the wrong category. However, I can provide a general discussion of the matter.
Chapter 11 is a workout plan - contracts can be rewritten.
The contract between you and the builder is an asset to be dealt with by the creditors. It's about like the contract of a professional athlete and can be assigned. As long as the contract is carried out by somebody on the other end, you are obligated to perform.
Like I said, talk to a bankruptcy attorney and see what they can do.
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