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What If A Seller Goes Bankrupt?
Question: What happens if a seller goes bankrupt before closing?
Answer: If you are the buyer or the broker you immediately head to your attorney. The goal of a bankruptcy proceeding will be to satisfy as many creditors as possible, therefore the sale may well be in everyone's interest. However, the sale will likely require court approval and that could delay closing. As well, one needs to ask if the sale agreement is enforceable in such an extreme and unusual situation.
Written by Peter G. Miller.
© 1997 Peter G. Miller. All Rights Reserved. Rules, Disclaimers & Notices.
Copyright © 2012 Realty Times. All Rights Reserved.
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