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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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My husband is a builder. He had a custom home go bad last

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My husband is a builder. He had a custom home go bad last year. The home owner is threatening a law suit. The business lost $70k and we've ended up with $20k in personal debt as a result. If we have a settlement or judgement against us from the the home owner, could the settlement be included in the bankruptcy? As a write off? or restructured if we file Chapter 13?

cfortunato :

Hi - my name is XXXXX XXXXX I'm a Bankruptcy attorney here to assist you.

cfortunato :

Is it possible for the homeowner to successfully claim that there was fraud or false pretenses involved?

Customer:

F

Customer:

Based on what the real estate attorney we have retainer has said, no. There are no grounds for fraud or false pretenses.

Thank you for your response.

If there was no fraud or false pretenses involved with the homeowner's claim (lawsuit), any settlement or judgment resulting from that lawsuit will be dischargeable in a Bankruptcy - either a Chapter 7 or a Chapter 13.

I think this is what you wanted to know. If not, please let me know. Thank you.
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