A land contract is considered an "executory contract" under bankruptcy law, which can be either accepted (in which case the bankruptcy filer has to promptly cure any of his defaults) or rejected, in which case the bankruptcy filer will not have to cure defaults but may still have to perform the contract. Additional considerations come into play depending upon which chapter of the bankruptcy code the filer filed under. You definitely should seek an attorney who has bankruptcy experience.
This answer on AVVO is not intended to be specific legal advice, which could only come from a full review of all of the circumstances. Please consult an attorney of your choosing before taking action, or refraining to take action.
You need to discuss this with an attorney who is familliar with both real estate law and bankruptcy law.
You haven't identified the other parties involved in this question so I cannot determine whether I may have a conflict in this matter. Should it turn out that I have an attorney-client relationship with any of the other parties, my response to this question will not prevent me from continuing to represent an existing client.
I agree with the other two attorneys and will add that the most important piece of information is that you have rights. Your rights vary depending on what your contract says and what happens next. You should find an attorney who is familiar with both bankruptcy and land contracts and get specific information on your rights (exactly) and what happens next. Good Luck,
Ms. Nepton is licensed to practice law in Michigan. The response herein is not legal advice and does not create an attorney/client relationship. The response is in the form of legal education and is intended to provide general information. Oftentimes the question does not include significant and important facts and timelines that, if known, could significantly change the reply and make it unsuitable. Ms. Nepton strongly advises the questioner to confer with an attorney in order to ensure proper advice is received.
It is unclear from your description whether you are BUYING the house on land contract or you are the SELLER. If you are the buyer, knowing what chapter the seller has filed under is important, but there are many other facts/circumstances that can come into play. Does the seller have a mortgage on the house? Who pays for taxes/insurance, and are those current? How (if at all) is your interest listed in the bankruptcy filing? Speak with an attorney who understands bankruptcy and real estate - they can pull up the bankruptcy filing, review the petition and schedules with you, and tell you how the matter may play out over time. The sooner you know what is going on in bankruptcy court, the sooner you can map out a course of action. Good luck!
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