If they did not submit an order, then there's no evidence that there were issues and no reason your insurance company should only side with one side of the story that is entirely verbal.If you have evidence that the septic maintenance company was not maintaining the system and fulfilling their part of the contract, you may be able to take them to small claims court.

Or am I at the mercy of the bankruptcy courts?

Court, attorney, sheriff, and other costs total I would estimate average $1200.

The current Supreme Court needs  a good case before it.  

Courts have held that owners of S corporations who keep the corporation viable, even though it has no revenue, are not actively seeking work because new work can come into the corporation at any time.

My business law prof (a practicing tort attorney) told our class over 95% of law suits are settled outside of court for less than $50,000. 

I don't know how it works in Washington state, but I have seen homes lost (very quickly) on terms like this in another state.It might be wise to consult with an attorney and have the contract reviewed against your states laws and court cases regarding your best options in this situation.If times get tough you never know who will end up owning the real estate either, meaning the verbal intentions of the existing owner may not be followed by the new owner.Talking to an attorney about your exposure and possible ways to limit it might be your best bet here, as well as talking about any possible leverage you may have to change the situation.Good Luck!  

Instead, the lender will disqualify the funds by declaring them a "gift" from the seller to the buyer."

That you will pursue a financial judgement against him in court for all the unpaid rent, utilities, damages, plus your legal costs.Since he's young, I would recommend you actually pursue a judgement against him as this will follow him around until he eventually pays it.

I won the eviction case in court March 16th.