Legal Question in Real Estate Law in Virginia

Will going bankrupt cancel a non-performace lawsuit against us?

We listed our house at below market value ''as is'', signed contract 2/12/03 for closing 3/15/03. Home was ''as is'' having buyer initial on contract.Our power co. damaged septic field just before closing. Investor buying home extended contract closing to 4-30 w/demand septic be fixed (certificate from county) or he could withdraw offer 4-30 (we signed addendum). On 4/30 he had closing in lawyer office without notifying his or our realtor or us, then charged us with non-performance.(property around us has became marked for commercial development 4/6 so our property is more valuable now.) We had hired lawyer to force power co. to fix septic,our lawyer got a fax asking for closing papers April 28th at 6 pm from buyers lawyer, our lawer mailed copy to us. We received mail 4/30 after closing. Hearing in court found evidence for suit against us since we were not there. We couldn't close, septic is not fixed. Our home ins. co. is trying to fix/replac septic but county rules changed since septic was put in in 1972 and there is no where to put new one, county won't let old one be repaired. If we file bankrupcy we have been told home contracts are voided, what about the law suit for non-performance? We don't have the money for all this. Thanks


Asked on 12/31/04, 10:21 am

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Re: Will going bankrupt cancel a non-performace lawsuit against us?

If a judgment was entered against you in the breach of contract suit(non-performance as you've termed it), that should be dischargeable in bankruptcy.

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Answered on 1/03/05, 10:53 am


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