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QCan I back out of my contract if the builder files for Chapter 11 and get back my earnest money?

Orleans Homebuilders files for bankruptcy!!!This story was in the Chicago Tribune Monday 03/01/2010."Orleans Homebuilders, Inc., a Pa.-based homebuilder with developments in five Illinois communities, filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in Wilmington, Delaware.



The company said it bankruptcy filing was needed because a $350 million senior secured revolving credit loan agreement had matured and it was unable to reach an agreement to extend the credit facility with 100 percent of its 17-member bank group or obtain a replacement facility.



Orleans said it had reached, pending court approval, an agreement for $40 million in debtor-in-possession financing and there would be no interruption in the operation of its 11 divisions in eight states. Orleans has suburban Chicago developments in Lake Villa, Aurora, Schaumburg, Bolingbrook and Woodridge.



The filing does not include its mortgage services subsidiary, Alambry Funding, Inc., which provides mortgage brokerage services for customers". We wrote a check to Alambry Funding Inc. They have not broke ground yet.We gave them a check at the begining of Jan. 2010 and were the 3rd buyers out of 11 that signed a contract with this builder.Anybody with experience in this let me know what I should do.

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