Builder bankruptcy and home warranty
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Builder bankruptcy and home warranty
I purchased a home on 04 JAN 2008 and the builder filed for bankruptcy on 29 JAN 2008. I was told that under the Bankruptcy Code warranties on homes that were purchased & closed prior to 29 JAN 2008 are no longer effective. I spoke to a rep from the company that purchased the warranty contracts and was basically told that I was on my own for any problems with the house. Do I have any legal options that I can pursue?
Asked on May 20, 2009 under Real Estate Law, Florida
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
If the builder went bankrupt, and the builder issued the warranty itself, and scheduled the warranty as an obligation on its bankruptcy filing, all you have is a claim against the bankrupt estate and value of the warranty is likely almost zero.
If the warranty was issued by an iinsurance company, you have a claim against the insurance company regardless of the builder's bankruptcy.
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