Legal Question in Real Estate Law in Texas

New Home Warranty

Hello:

I closed on a house in Dec. of 2000. In mid-2001, I receive a letter from my home builder stating that they have filed for bankruptcy and that they will no longer be able to do any warranty work. In talking to neighbors, I have come to find out that this family/individual has done this in other states. He builds a few homes as a Corporation then files for banckruptcy protection and moves on. This time he has simply filed for bankruptcy and began building commercial property (I assume under a new Corporation name). He owns three of the homes he built and all his kids drive new vehicles. Obviously this guy knows the bankruptcy system. Is there anything that can be done to hold him liable to home warranties? Is there anything I can do to expose what he is doing?


Asked on 2/06/02, 1:30 pm

1 Answer from Attorneys
Lawrence Maun Lawrence J. Maun, P.C.

Re: New Home Warranty

Use of the bankruptcy code to defraud customers probably is bankruptcy fraud, a federal crime. On warranties he could be individually liable because the corporations he uses are alter egos. However, holding him persaonlly responsible for warranty work will probably be of little value as it is obvious he is trying to avoid perfroming on the warranties. You might report him to the U.S. Trustee's office at the Bankruptcy Court. They might investigate. Larry Maun 713.266.2560

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Answered on 2/06/02, 5:27 pm


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