Sorry but I'm sure the deposit is gone for good. It would be highly unusual for someone to be paying debts right before declaring bankruptcy. Avoiding those payments is the reason for doing it. I lost a computer because it was at the computer store to be repaired when the company went bankrupt. Suddenly I was a creditor. I filed a claim and got a few bucks many years later. An engineering firm owed me a fee and the same thing happened. Because the builder owed you the deposit by defaulting on your deal, you may be able to claim it as a bad debt on your taxes so find the written records of all of your costs and show them to a professional tax preparer but don't delay talking to a lawyer; dont rely on my or anyone else's opinion.. Figure out who will own the property, decide if you want to buy it, and find out who to contact in order to avoid having to do it at auction. This could be an opportunity. If you do buy it make sure the seller protects you from any and all claims against it. You are extremely lucky to have not lost a great deal more money. There will be many people more seriously hurt by the bankruptcy so count your blessings.

I would also be wary of building in a neighborhood that's not developed, especially in this economy. You can read all the horror stories--no neighbors, no utilities, no roads, no amenities, and a bankrupt builder who won't put any of that stuff in. The difference in price is worth the guarantee those things will be there. Whether you can afford that difference is a separate question that only you can answer. Of course, the builder may become more interested in lowering his price if the hard times continue.

Suppliers are a very good source of info... they can tell you who is paying their bills. However, these pool companies have high overhead and high credit lines that they went under without much warning. ItÂs like they just keep on going until they canÂt get any more credit. I am thankful that my wife is an accountant and she keeps everything in line. HGTV showcased our company from start to finish on a major renovation to a pool here in Orlando that had a large structural crack. We also added a gunite spa, paver deck, landscaping, etc. It aired on February on the show Ground Breakers. It has kept us busy fixing the sloppy stuff some builders is doing just to make a cheap pool. We are seeing less quality now that everyone is just trying to build a cheap pool. They donÂt worry about quality. I donÂt think I would bother too much with talking to previous client because of course they are going to send you to the happy customers. A good idea is to ask to see some pools under construction so you can see the quality and talk to some of the subcontractors or employees. I am sure you will get an earful if the contractor is behind on payroll! Good luck, sorry I canÂt give more info since I am a pool builder. I can get you some names of local suppliers and subcontractors so you can do your own research. Also, be careful about the payment schedule! Jason

mkiv808-"Well, I would be extremely careful what I say. The lawyer I contacted has yet to get back to me with his thoughts." Have you ever heard the saying 'Fools rush in where angels fear to tread'? This idiom is used where people who are inexperienced or lack knowledge do something that more informed people would avoid. Sweet_tea and chisue are both right. Talking to the builder BEFORE speaking to your lawyer is a recipe for disaster. It is called 'tipping your hand' to the dealer. If your going to be that careful then why not talk to your lawyer first? Is it worth losing your deposit because you think the people who sold you a unit next to a biker bar are going to be fair? I'd be asking my attorney to pick over the contract with a fine tooth comb to be sure I don't miss a thing. If he speaks to them he will have a much better chance of getting you what you want. He might even be able to get them to say something that would incriminate themselves to your benefit (returned dep, better unit, etc). I've lived near bars and they are a major public nuisance. Especially (in your words) "a loud, obnoxious biker bar". You said the owner has owned it for 50+ years. Does he have a son or relative that might take over the business when he retires? Noise ordinances are broken all the time. Bar owners make tons of money on alcohol. They could care less about fines. In fact, some of them consider fines to be part of the cost of doing business. They are also known to be generous to public officials! Plus, plenty of bikers carry guns. Even if the roar of their hogs/bikes leaving the bar at 2 a.m. doesn't bother you, a passed out patron on your back patio might (who couldn't drive home) . Or worse, a stray bullet from a fight.... State budgets are suffering all over the country. Many cities are having to cut back on police and fire services. Will your city be one of those who will only be able to support one officer per car/shift? Has the builder sold all of the units yet? If enough prospective buyers get wind of the biker bar, then the other units might not sell that fast (or at all). Who will pay the extra HOA fees then? What if the builder goes out of business? Many builders are folding because their bank will not longer give them credit. You've probably seen those developments with many available lots but only a few completed houses. Good luck getting your deposit back from a bankrupt builder. My banker has said as much. He says he has 5 developers that he can't loan a dime to because of the credit crunch. The real estate the bank has cannot be sold so it is being rented until the market 'improves' (?). What kind of people might rent these townhouses? Are they likely to take as good care of the units as the owners will? Much useful advice and food for thought has been offered. Many well-meaning readers will be curious to see if you take this "bull" (builder) by the horns yourself (or allow your lawyer to do his job)!