Legal Question in Bankruptcy in Pennsylvania

Hi,

I have an unusual and sort of complicated situation that I am seeking answers for. A few years ago, my Dad was trying to sell a 16 acre piece of land in NW Pennsylvania. A man came to purchase the land but did not have the full asking price so he and my Dad worked out a payment arrangement and my Dad even typed up some documents and had the man sign them. Well, as you can imagine, the man made about half the payments and then stopped. The man has put a house on the property (a manufactured house that he also has not finished paying for) and had a septic and well put in. My father sought legal help to get the rest of his money, as did the manufactured housing company. This has been a very long process and the property was set to go up for Sheriff�s sale on Feb. 7, but on Feb. 6 we found out that the man had filed for Chapter 13 bankruptcy. As far as we know, this man has no income from employment, he has no job. I don�t know if he gets some type of disability or not??? There really isn�t anything physically wrong with him, he is just one of those �sue happy� people. He sued his former homeowner�s insurance company for funds because his prior home burned down. He also had a couple of other claims out for incidents including one where some pipes mysteriously rolled off a shelf in a home improvement store and hit him in the head. ?? This guy is a real winner. Anyhow, what now? What can my Dad expect now? Do you think he will ever get his money? Is there anything he can do now? Does he just have to wait it out? He really would just like the man off the property and gone for good.

Thank you


Asked on 2/17/14, 4:02 am

1 Answer from Attorneys
Rachel Hunter

I don't know what kind of papers your father typed up but if the buyer filed for a chapter 13 bankruptcy, he and his attorney have to come up with a plan as to how the buyer is going to repay his creditors. While the buyer does not need a job, he does need a steady stream of income in order to have a chapter 13 because he will have to make payments to the bankruptcy court. If the man defaults in his bankruptcy plan or for other reasons, the bankruptcy can be dismissed.

For now, I think your father needs to consult with a bankruptcy attorney to make sure he is listed as one of the creditors and timely files a proof of claim so that he can get paid. Depending on the plan, your father can object to it, but if the bankruptcy is proper then the chapter 13 allows the buyer to remain in possession of the land and his other assets.

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Answered on 3/02/14, 9:16 pm


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