Legal Question in Credit and Debt Law in Nebraska

Lawsuit

My mom tried selling her home a couple of years ago, and a couple signed a contract agreeing to buy it. Then, a few weeks later, right before they were supposed to move in they backed out of the deal--they refused to go through with the purchase, citing financial problems, even though they then went and bought another house in town. My mom sued for lost money from the contract, but they now say they can't pay. The settlement amount has already been reduced drastically, and now I think they've filed for bankruptcy. Is there no way for my mom to get the money she's owed? The couple even agreed to a settlement of $1,500 a few days ago, and then backed out of THAT, saying they couldn't pay. Conveniently, that news comes the day before they were supposed to meet in court, so now there's no way for my mom to make the scheduled court date. Sounds like a mean, manipulative game and I'm not happy about my mom losing all this time, energy, and especially money. Is there something she can do?


Asked on 6/11/08, 12:10 am

1 Answer from Attorneys
Katherine Owen

Re: Lawsuit

If the couple is in bankruptcy, your mom doesn't necessarily need to attend the creditor's hearing(I assume that's the hearing you're talking about.)

The more important thing for her to do is timely file a proof of claim if the couple is in a chapter 13 or an asset chapter 7, and talk to a bankruptcy attorney about whether there are any grounds to file an adversary proceeding in the couple's bankruptcy alleging a reason that this debt shouldn't discharge. There aren't many exceptions to discharge, and they are hard to prove, but not impossible. I don't see any such facts in what you put in your question (breach of contract isn't grounds for a bankruptcy discharge exception) but there may be something that you haven't told me yet.

If the proof of claim is allowed, and there are any assets to distribute, then your mom could get some of her money back.

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Answered on 6/11/08, 10:15 am


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