What recourse can you take for negligent builder? Kansas City, Mo

[Reece Hendrickson]

So i have some friends in the Kansas City, Mo area that have been ripped off by the builder of their dream home. The short version is the builder started construction on the house and had gotten to the point where it was framed in. Out of the blue they get notified by the city that they dont have a permit to build on their property. So they ask the builder and he says "Oh how did they find out?" Nice right... More things are unveiled and they decide to sue the builder. They get an engineer to inspect the house and find out that the house has been constructed in a way that was not safe and will not be habitable. Basically it needs to be torn down. So friends have to keep paying for insurance and bank loan while the lawsuit is getting dragged out for several months. The builder has let his insurance lapse and has made sure to put all of his assets into his fathers name ie. House, land, etc.

So what options do my friends have to sue? Maybe peirce the corporate veil but then builder declares bankruptcy and they get nothing?