Home buyer shafted?

[veritas]

Was there a debtor-creditor relationship?

I believe there is a contract where the builder owes the buyers a repayment. That is in the form of a residence. He filed bankruptcy and did not repay the debt.

Never give a builder a deposit. Place it in escrow or with an attorney.

[JON]

First

Whoever gets outside the bankruptcy, besides the government. No matter what you have in a note it does not get through a bankruptcy. Anybody may if they want payback discharged debts, but they never have to in a Chapter 7. If they come up with a bunch of money to pay discharged debts after bankruptcy the one not getting paid can petition to reopen to find where the funds come from.

If this was obviously a scam-if the seller knew they were never going to be able to sell the house and enterred this deal-you have theft casualty loss. How that is proven is time factors and what the seller did to complete the sale.