Bankruptcy Law

Bankruptcy law questions? Ask a bankruptcy lawyer.

Ask a Lawyer,
Get an Answer ASAP!

This answer was rated:

I am the buyer on a land contract. The seller wants to get…

I am the buyer...

I am the buyer on a land contract. The seller wants to get out of the contract to go with another offer/contract. They have threatened to file bankruptcy if we do not accept a small fee to walk from our contract. Do we lose our contract if the seller files bankruptcy?

Lawyer's Assistant: What state are you in? And has anything been officially filed?

CO, we have recorded the contract with the county

Lawyer's Assistant: Has anything been filed in civil court? If so, what?

No filing in civil court

Show More
Show Less
Ask Your Own Bankruptcy Law Question
Answered in 4 minutes by:
1/16/2018
DrakeLAW
DrakeLAW, Attorney
Category: Bankruptcy Law
Satisfied Customers: 1,038
Experience: Attorney at Drake Law Firm PLC
Verified

Hi, my name is ***** ***** I look forward to helping you, please give me a moment to review and possibly research answers to your question.

Ask Your Own Bankruptcy Law Question

Here is an article that I found that does a pretty good job explaining some of the issues in this case.

http://www.kalawgr.com/blog/65-land-contracts-in-bankruptcy

The issue revolves around whether or not the land contract is considered by the Court to be an "executory contract" which the trustee can choose to accept or reject or if it is considered a security agreement, in which case, there is no discretion to terminate it and you would retain a lien against the property. It is all very case specific.

If they have assets or are otherwise in good financial shape, it seems their threat of filing bankruptcy is more of a bluff.

Please kindly rate the question so I may be credited. Thank you. You can still ask follow-up questions.

Ask Your Own Bankruptcy Law Question
Customer reply replied 4 months ago
Please answer if included in the original payment amount. The seller is an LLC and does not appear to have any other assets other than the land and are likely not in good financial shape - which is why they agreed to sell the land over time. We believe we flushed out a cash buyer when doing our due dilligence and the seller wants that offer instead. We also believe the other buyer (large local builder) and sellers agent (cushman wakefield) may also be liable for tortious interference with our contract.

Have they suggested what chapter they would file?

If they file chapter 7, they get nothing out of it anyway. They lose all assets to creditors, of which you would be one and if you are the only creditor it would be completely pointless. And sure, you could be on to something with that tortious claim.

Did you put money down and how long have you been making payments for and how many payments remain?

Ask Your Own Bankruptcy Law Question
Customer reply replied 4 months ago
Can you confirm the follow up questions are included? We put $15K down in earnest money. There are other creditors and that is why they are selling the land - to pay the creditors. We have not made a payment yet because the seller never showed up to closing as they wanted the other offer instead. They are in breach of our contract at this point. Payments of $1.5M remain to be paid over a two year period - by selling condos constructed on the land - paying them from profits of the sales. They are trying to get the $$ all at once after we talked to several local builders on the project.
Customer reply replied 4 months ago
I don't know what chapter they would file

Yes, the follow-up questions are included.

Ok, I see. Well that is a difficult business call to make, tough to say. If you haven't yet paid anything, I wonder what you have to lose calling their bluff.

DrakeLAW
DrakeLAW, Attorney
Category: Bankruptcy Law
Satisfied Customers: 1,038
Experience: Attorney at Drake Law Firm PLC
Verified
DrakeLAW and 87 other Bankruptcy Law Specialists are ready to help you
Ask your own question now
Customer reply replied 4 months ago
We could lose their $10K offer to walk from the deal. Well, it sounds like they could get out of the contract if they want to file bankruptcy. We will likely take the $10K and go after the builder and CW for tortious interference in the amount we could have made on the project. Thank you for your time.

Well...they couldn't "get out of it" in the sense they come out unscathed. They would be coming out with nothing. Just a matter of what other creditors would get out of it. It would be a scorched earth move. I assume you would get the $10k plus your $15k earnest money. You will know best based on your assessment of the parties and the situation. Best luck.

Ask Your Own Bankruptcy Law Question
Customer reply replied 4 months ago
I believe the creditors also own the LLC land owner that would file bankruptcy - or at least they are tied at the hip to this LLC. So, they would come out with something.

Insiders can't get paid in that manner in bk. But, it would then involve litigation, etc. So, again, have to assess the odds and what you want to go through.

Ask Your Own Bankruptcy Law Question
Was this answer helpful?
Ask DrakeLAW Your Own Question
DrakeLAW
DrakeLAW
DrakeLAW, Attorney
Category: Bankruptcy Law
Satisfied Customers: 1,038
1,038 Satisfied Customers
Experience: Attorney at Drake Law Firm PLC

DrakeLAW is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Terry L.

Terry L.

Attorney

2,679 satisfied customers

Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.

cortrightlaw

cortrightlaw

Attorney

511 satisfied customers

Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.

JoeLawyer

JoeLawyer

Attorney

376 satisfied customers

Attorney in the practice of Bankruptcy Law since 1996

A.J.

A.J.

Attorney

262 satisfied customers

Experienced consumer bankruptcy attorney.

Fritz

Fritz

Attorney

209 satisfied customers

Florida attorney with extensive experience in Chapter 7 and Chapter 13 consumer bankruptcy cases

Law Girl

Law Girl

Attorney

153 satisfied customers

I am an attorney.

Paul K, Esq.

Paul K, Esq.

Attorney

141 satisfied customers

10 years Exp., Great customer service, Prompt responses.

< Previous | Next >

Related Bankruptcy Law Questions
I received a chapter 7 discharge in a no asset case. I
I received a chapter 7 discharge in a no asset case. I didn't include a Bank of America account that I recently saw on my chexsystems report. Does that mean it won't be discharged. FYI I live in Ohio… read more
KUMI95
KUMI95
Attorney
Doctoral Degree
17 satisfied customers
BANKRUPTCY: Debtor filed Chapter 7 bankruptcy and included
BANKRUPTCY: Debtor filed Chapter 7 bankruptcy and included Garnished wages as their assets in SCH A/B, and claimed as exempt in SCH C. The funds were garnished within 3 months of filing.Is there a for… read more
Terry L.
Terry L.
Attorney
Doctoral Degree
2,679 satisfied customers
I converted chapter 13 bankruptcy to chapter 7. will the
I converted chapter 13 bankruptcy to chapter 7. will the bankruptcy stay on my credit report for ANOTHER 10 years? … read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
I filed chapter 7 the day before my home was to be sold in
i filed chapter 7 the day before my home was to be sold in foreclosure on the court steps to stop that from happening. Now if the trustee says i have no equity in my home and abandons it and discharge… read more
Phillips Esq.
Phillips Esq.
Attorney
JD
19,568 satisfied customers
If I file for chapter 7 or 13 can the courts take/garnish my
if I file for chapter 7 or 13 can the courts take/garnish my state retirement pension. its all I will have to live off after this ??????? … read more
Terry L.
Terry L.
Attorney
Doctoral Degree
2,679 satisfied customers
Filing chapter 7 bankruptcy in Des Moines Iowa- Regarding
Filing chapter 7 bankruptcy in Des Moines Iowa- Regarding credit card judgements that have been placed on you; what form(s) do you include these on. How do you list them?… read more
KLAW
KLAW
Juris Doctorate
2,102 satisfied customers
I may have to file chapter 7 bankruptcy. My debt is
I may have to file chapter 7 bankruptcy. My debt is primarily non consumer debt.[87%]. I was reading US Code 547 c 9 and was also told that since it a non consumer debts chapter 7 that i could transfe… read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
In form Form 106A/ for Chapter 7. In any of the sections
In form Form 106A/B for Chapter 7.In any of the sections when they ask you : 1.) Current value of the entire property? 2.) Current value of the portion you own?What do I put for part 2?Example : Singl… read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
I may have to file chapter 7 at some point in future. Both
HelloI may have to file chapter 7 at some point in future. Both my daughter and my son saved and I helped them buy vehicles. They paid for them. They are older used cars worth 2500 and 3500. Can I tra… read more
Alex Esquire
Alex Esquire
Managing Attorney
Doctoral Degree
153 satisfied customers
In a chapter 7 bankruptcy if there is both a discharged tax
In a chapter 7 bankruptcy if there is both a discharged tax liability and a current tax liability and assets that the trustee will sell. Which tax liability will the proceeds from the sale go to first… read more
Terry L.
Terry L.
Attorney
Doctoral Degree
2,679 satisfied customers
Another question? If a person filed chapter 7 bankruptcy and
Ok another question?If a person filed chapter 7 bankruptcy and remAins paying on vehicle through discharge on bankruptcy, if at some point I stop paying will they repo the vehicle. I know it's not on … read more
Ray
Ray
Lawyer
Doctoral Degree
32,562 satisfied customers
This is a chapter 7 question...the Debtor currently has a
This is a chapter 7 question...the Debtor currently has a garnishment that will be extinguished by the chapter 7 discharge...Does that garnishment still go on Schedule I? How would it be treated on th… read more
Terry L.
Terry L.
Attorney
Doctoral Degree
2,679 satisfied customers
I hired an attorney in IL to file a Chapter 7 for me. Most
I hired an attorney in IL to file a Chapter 7 for me. Most of my LLC's are based in GA. I had since moved to IL for six months so filed in that state. I had a couple items that were sold and the credi… read more
Phillips Esq.
Phillips Esq.
Attorney
JD
19,568 satisfied customers
I bought trustee deeds from a Chapter 7 bankruptcy trustee
I bought trustee deeds from a Chapter 7 bankruptcy trustee years ago, and the title of the properties are lised***** Anywhere, USA 12345 subject to the existing claims and creditors either known or un… read more
Damien Bosco
Damien Bosco
Attorney
Doctoral Degree
4,483 satisfied customers
Who owns the home Title after Chapter 7 Discharged ?. Pls
who owns the home Title after Chapter 7 Discharged ?. Pls check the Case Number: 17-16948- New jersey case . Maura Ojeda. I need to find if she got CH7-Discharged does she have any rights to stay in t… read more
Barrister
Barrister
Attorney/Landlord/Realtor
Doctoral Degree
37,047 satisfied customers
If a husband files Chapter 7 bankruptcy, can the husband
If a husband files Chapter 7 bankruptcy, can the husband borrow money from the wife, after the 341 hearing but before the chapter 7 is discharged? … read more
Phillips Esq.
Phillips Esq.
Attorney
JD
19,568 satisfied customers
Assignment of an executory contract in bankruptcy or a
Assignment of an executory contract in bankruptcy or a workout. If a corporation underwent an involuntary wind down. Say an ABC (Assignment for the benefit of Creditors) would the "sale of all or subs… read more
Phillips Esq.
Phillips Esq.
Attorney
JD
19,568 satisfied customers
I have an Executory contract. A 10 year license of software.
I have an Executory contract. A 10 year license of software. We are the Licensor. The licensee has paid for the license with shares of its company (private). There are milestone payments. I believe th… read more
DrakeLAW
DrakeLAW
Attorney
1,038 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x