Legal Question in Real Estate Law in Massachusetts
sellers responsible for sewer connection but filed bankruptcy
Three yrs. ago I purchased a home w/ the P&S stating the sellers were to connect the property to city sewer (only 2 houses on street had it). Plans were started, however, when everything halted & sellers changed their phone # to an unpublished #, I hired an attorney. Progress stopped because it became more involved and more expensive than the sellers anticipated. Two days before we were to appear in court, they filed bankruptcy. My lawyer said the whole thing looks pretty hopeless, but I feel differently. What can be done or is my lawyer correct?
2 Answers from Attorneys
Re: sellers responsible for sewer connection but filed bankruptcy
It depends on what kind of bankruptcy they filed and whether they have any assets. In a chapter 13 case, they file a plan for paying back creditors. In a chapter 7 case, they would be eliminating their debts without any payment. There are exceptions to those descriptions. Either way, a bankruptcy case could damage your chances of recovery, but would not necessarily eliminate it. You should have the case looked at by a bankruptcy attorney. 95% of my practice is bankruptcy, so this is something I do all the time. Call me for an appointment; 617-367-4260.
Re: sellers responsible for sewer connection but filed bankruptcy
By filing bankruptcy, you are immediately stopped from continuing your lawsuit in MA courts. You can file a claim in bankruptcy court. Depending upon the type of bankruptcy and their assets you may get some relief. If they filed a chapter 7 and have no assets, you are not likely to get anything. If the have assets and filed a chapt 13, you may recover something over a three year period.
You should contact an attorney familiar with both real estate law and bankruptcy.
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