Bankruptcy

[dcrowes]

I closed on a house and the builder had not completed everything so the escrow agent held out $15000 for completetion. He has since filed chapter 11. There is still approx. $4800 in escrow and he refuses to complete my house. Can I take him to small claims court to get that money to finish my house or if he gets relief at .10 to .20 on the dollar will my escrow money go back into the general fund.
Thank You,
David

 

[JenniferH]

David:

If he is in the process of banko then going to small claims or getting a judgment will not help you because he probably filed your debt under the banko. However, I am not well versed in Ch 11 so I am unsure of the correct answer. I believe the the court would allow a fraction (10 cents on the dollar) deal, since I think Ch. 11 deals this way. Also, for future reference, you need to check your small claims court for the dollar claim limit before filing.

Best bet: Find a lawyer in your area and get actual legal advice on what to do and what your options are.

Good Luck,

 

[HomeGuru]

I closed on a house and the builder had not completed everything so the escrow agent held out $15000 for completetion. He has since filed chapter 11. There is still approx. $4800 in escrow and he refuses to complete my house. Can I take him to small claims court to get that money to finish my house or if he gets relief at .10 to .20 on the dollar will my escrow money go back into the general fund.
Thank You,
David

My response: your best bet is to file a claim with the BK Trustee. The Trustee should either direct escrow to release the money to you or pay the contractor that you hire to complete the work.