Legal Question in Real Estate Law in Illinois

Builder Bankruptcy can I break contract

I recently purchased a home and my builder filed for Ch.11. Home has not been built at all. They told me my down payment is safe in a 3rd party account and they are trying to obtain financing to start the home. I want to break the contract and get my down payment back. Can I do this?

Asked on 5/22/09, 12:34 am

2 Answers from Attorneys

Burton Padove Indiana and Illinois Lawyer, Burton A. Padove
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Re: Builder Bankruptcy can I break contract

Your contract needs to be reviewed by an attorney to determine if there is a way out of the contract in light of the bankruptcy. Perhaps there were some time restrictions in the agreement. Perhaps a bankruptcy clause is in the contract.

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Answered on 5/22/09, 11:01 pm
Walter Palmer Law Office of Walter Palmer
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Re: Builder Bankruptcy can I break contract

This is really a Bankruptcy question and I am not a bankruptcy attorney. I almost rejected the question because it is in the wrong category. However, I can provide a general discussion of the matter.

Chapter 11 is a workout plan - contracts can be rewritten.

The contract between you and the builder is an asset to be dealt with by the creditors. It's about like the contract of a professional athlete and can be assigned. As long as the contract is carried out by somebody on the other end, you are obligated to perform.

Like I said, talk to a bankruptcy attorney and see what they can do.

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Answered on 5/22/09, 8:00 am

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