Financial issues affecting a deed holder and/or his or her personal legal situation is the primary drawback to purchasing real estate using a Land Contract. But in nearly every situation (except fraud!), the law sides with the person who is making payments on the land contract property.
If a home under Land Contract is not owned specifically by the business that is filing bankruptcy, a business bankruptcy would have no effect on a personally-owned property. (If the personally-owned home was used as collateral for business financing at any point, those facts can change the result.)
Further, a Land Contract on a property is not voided automatically by a bankruptcy filing by its owner; even if the home did change ownership in bankruptcy, the signed contract may still remain in force.
However, there are many details that affect such a situation and two sentences in an email cannot possibly provide all of the information necessary to make such a determination. Therefore, we strongly suggest you consult a local attorney to review your situation and options. To find a local attorney for FREE, visit Standard Legal’s Attorney Find page.