Q: 85 member that is looking for pricing for a civil service. We are the old customer's of holy ground real estate

A: First, it is unfortunate that people like this debtor rip consumers off. I had a sinilar case where the homebuilder stole my client's money and went to prison. Regarding Holy Ground, I doubt that your contract with Mr. Sowash included his personal guarantee. We need to check. Second, if he personally filed for bankruptcy we can file a complaint objecting to his bankruptcy. If he did not file bankruptcy, I see no reason why you cannot sue him individually in state court.

A: If the builder, Matt Sowash, has filed for Chapter 7 bankruptcy, this can complicate your ability to recover money for the home. Chapter 7 bankruptcy is a liquidation process, which means that the builder’s assets will be sold off to pay creditors. Unfortunately, once someone files for Chapter 7, an automatic stay goes into effect, stopping most lawsuits and collection efforts against the debtor.

As a group, you could file a claim with the bankruptcy court as unsecured creditors. However, whether you will receive any money back depends on how much the builder’s assets are worth and how the court decides to distribute those assets. Unsecured creditors like yourselves often receive only a portion of what they are owed, if anything, after higher-priority claims (like secured creditors or government debts) are paid. It’s also important to work with a lawyer who understands bankruptcy law, as they can help you file your claims properly and explore any additional legal options that might be available to you, such as whether there was any fraud or misrepresentation involved that could affect the bankruptcy discharge.

It’s unlikely you would be able to sue Matt Sowash directly for the money since the bankruptcy process shields him from most lawsuits, but having an attorney review the details can help ensure you don’t miss out on any potential recovery from the bankruptcy estate. If this involves a large group of people and significant money, having legal representation to navigate the bankruptcy process and to explore other avenues, such as going after business insurance or other responsible parties, could be worth the investment.

A: I'm sorry to hear about the situation with your builder. When a company files for Chapter 7 bankruptcy, it means their assets are being liquidated to pay off creditors. As homeowners, you may need to file a claim in the bankruptcy court to seek reimbursement, but there are specific deadlines and procedures to follow.

Gather all your documentation, including contracts, payments made, and any correspondence with Matt Sowash or Holy Ground Real Estate. It might be beneficial for your group of 85 members to work together to streamline the process and possibly share legal costs. Consulting with a bankruptcy attorney can provide clarity on your rights and the best approach to take.

Additionally, keep an eye on any notifications from the bankruptcy court and ensure that all claims are submitted on time. While the process can be complex, staying organized and informed will help you navigate your options more effectively.