Illinois  |  Real Estate Law

Legal Question

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

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?

2 Answers


Answered on: 5/22/09, 11:01 pm by Burton Padove

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.


Did you find this answer helpful?

0 Users found this answer helpful.

0 Attorneys agree with this answer.


Indiana and Illinois Lawyer, Burton A. Padove 2327 45th Street, Suite B Highland, IN 46322

Other answers from this attorney

Answered on: 5/22/09, 8:00 am by Walter Palmer

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.


Did you find this answer helpful?

0 Users found this answer helpful.

0 Attorneys agree with this answer.


Law Office of Walter Palmer 159 Pamela Drive South Chicago Heights, IL 60411

Other answers from this attorney

Didn't find what you were looking for? Ask an Attorney!

Get answers from the top Attorneys
Ask Question

133 Answers given in the last few hours.

8661 Active attorneys ready to answer your question

Search Past Answers:
  Advanced Search