Subject To seller plans to file for Bankruptcy in three months

[Pablo Mendez]

I am in the process of purchasing my neighbor's property Subject To. Have all the documents, have a title company that understands Subject To and is on onboard, have a CPA that is familiar with subject to and has given some advice. Have documents for a Trust and LLC ready.

Everything was good to go, Was talking with my neighbor over the last details, getting his loan balance etc to sign the sales contract. He said to wait a few days because he is planning on filing for Bankrupcy in three months in the Spring. He asked how is that going to affect this ideal. I'm glad he brought this up. 

So past few days have been gathering information about how a bankruptcy affects a Subject To. 

The title company says it's too risky. CPA says it's too risky. 

A bigger pockets member that I have been texting with said regarding the future bankruptcy, "Yes its a mess. Some say no problem since the title changed. Ask your neighbor if he'd stay in the house through the bankruptcy and you buy after its settled. A primary residence is protected."

I am going to speak with a bankruptcy attorney tomorrow for an hour to gain any insights on how this may play out and what are some of the pitfalls. 

Anyone on here have any insights or experiences with Subject To before or after the seller files for bankruptcy? 

Should I work the deal differently or have additional contracts specific to what happens in case seller files bankruptcy? 

Thanks.