Many people purchase homes, but sometimes they suffer financial hardship, causing them to be unable to pay for their new homes. In cases like these, bankruptcy is a possibility.
There are many instances where a homeowner has invested in a home warranty before bankruptcy takes place. We’ll focus on if a homeowner can keep their home warranty after they file for bankruptcy.
When you buy a new home, you want to make sure that it stays in the best shape possible. There’s a terrific way to do this by investing in a home warranty. Let’s say you’re a Georgia homeowner seeking out a Georgia home warranty. Once you scour the internet for home warranty companies in GA, you’ll be that much closer to taking care of your home.
As a new homeowner, you want to treat your humble abode right. This involves investing in repairs and maintenance of your appliances, plumbing systems, electrical systems, and heating and cooling systems. You don’t want to be saddled with the costs of paying for each contractor or technician visit that occurs. With fees ranging from low-end service call costs to hourly repair fees, these amounts will stack up on top of one another. This is where a home warranty with comprehensive coverage options comes in handy.
Consider the costs associated with repairs for your dishwasher, furnace, washer, sump pump, garbage disposal, septic system, and various other home appliances. With home warranty coverage, you can ensure that you won’t have to deal with the hassle of trying to come up with extra money for such repairs.
Expensive home repairs can quickly drain your bank account to the detriment of your household. Therefore, it helps to get a home warranty that includes a comfortable plan at an affordable price. When you do this, you’ll make sure that your heating system, plumbing system, cooling systems, and electrical systems receive the best warranty work. Home warranties are an excellent choice for new homeowners or rental property occupants who want to keep their homes in the best shape possible.
Bankruptcies and Home Warranties
In certain cases, new homeowners might have to file bankruptcy on their homes. It’s an unfortunate aspect of life, but it happens. The bankruptcy process involves the legal process of a homeowner who can’t repay their debts to creditors. The bankruptcy process is often begun at the court level by the debtor.
In many cases, people will undergo bankruptcy due to financial hardships. This might be due to medical expenses, credit card debt, job loss, unexpected expenses, and divorce. In such situations, it helps to contact a bankruptcy attorney to supply legal advice about your bankruptcy case. This extends to answering questions like if you can keep your home warranty after filing bankruptcy. For home warranties, it’s not so clear and cut.
Keeping your home warranty during bankruptcy varies from case to case. Warranties are viewed as contingent and unliquidated pre-petition general unsecured claims. It often falls on the court to view this as unsecured debt that should or shouldn’t be factored into a bankruptcy case.
The bankruptcy judge will do their due diligence to listen to an experienced bankruptcy attorney who is arguing on behalf of their client. Ultimately when filing bankruptcy, there’s no set answer on whether a home warranty can be kept or not during this stressful time. Build a strong enough attorney-client relationship with your bankruptcy attorney so that you can know if holding on to your home warranty will be a choice.
Do Your Homework
When wading through the murky waters of both home warranties and the bankruptcy process, do as much homework as possible. Though these words don’t often collide, it helps to have an idea of how to navigate through both areas. Home warranties can be complex and attempting to understand bankruptcy can drive you crazy, so enlisting the help of an expert will be extremely helpful.