Your Home Warranty Company Went Bankrupt — Now What?

Your options are limited if your home warranty company files bankruptcy, but you might be able to try to get some money back.

Some or all of the mortgage lenders featured on our site are advertising partners of NerdWallet, but this does not influence our evaluations, lender star ratings or the order in which lenders are listed on the page. Our opinions are our own. Here is a list of our partners.

Updated Jan 30, 2026 · 4 min read

Written by

Lead Writer & Content Strategist

+ more

Edited by

Senior Editor & Content Strategist

+ more

SOME CARD INFO MAY BE OUTDATED

This page includes information about these cards, currently unavailable on NerdWallet. The information has been collected by NerdWallet and has not been provided or reviewed by the card issuer.

Elite Home Warranty, a New York-based company that offered plans in more than 40 states, filed for bankruptcy in November 2025. It’s not the first home warranty company to leave homeowners without coverage and no way to recoup their upfront payments. So what can you do if your home warranty provider files bankruptcy? That depends on a few factors. Here’s what you need to know.

It depends on the type of bankruptcy

Companies can file two types of bankruptcy, and the type they choose determines what options you have available .

Chapter 7

Chapter 7 bankruptcy means the company is closing its doors and selling everything to pay off as much debt as it can, known as liquidating its assets. In this case, the company doesn’t plan to stay in business. You have very few options in this situation and are unlikely to get any sort of refund.

Chapter 11

Chapter 11 bankruptcy means the company is planning a reorganization. This could include selling off some assets or letting a different company purchase the business. In this case, the company intends to continue operating in some form. You have more options with this type of bankruptcy, but it’s not a guarantee that you’ll get any money back.

Can I still file a home warranty claim?

Whether the home warranty company continues to fulfill your service agreement is up to the company and likely depends on its situation. However, companies that file for bankruptcy can’t repay all of their debt, which means they don’t have a lot of financial resources available . That means a company might not be able to afford to pay for repairs if you submit a claim.

If the company filed Chapter 7 bankruptcy: Probably not.

It’s unlikely that you can file a claim in this case or even get a hold of a representative to report a claim. Because the company is selling its assets, it doesn’t plan to stay in business and so has no reason to honor its contracts.

If the company filed Chapter 11 bankruptcy: Maybe.

You might be able to file a claim in this situation. If the company is doing a reorganization and another company isn’t taking it over, your home warranty provider probably wants to keep its customers. In that case, your service will probably continue.

However, if a different company is buying your home warranty company, it might not honor your service agreement. It depends on how the new company goes about the situation. If the new company is taking on existing contracts as part of its acquisition, then your home warranty will probably still be active. But if the new company doesn’t want to purchase the existing contracts, it could mean that your home warranty is void.

How to know: If your home warranty company filed Chapter 11 bankruptcy, try calling the company to ask about your coverage. If you can’t get an answer from the company, read any notices it sends you or news stories about the case. Sources often report if a company is being acquired and what that means for customers.

Can I get a refund or reimbursement?

If your company filed Chapter 7 bankruptcy: It’s unlikely.

When a company files Chapter 7 bankruptcy, it’s selling its assets to repay its debt, and certain types of debt have to be repaid before other types of debt. Unfortunately, customers often fall below other debtors in priority. For example, secured creditors, such as banks or lenders, often have liens or contracts that legally require your home warranty company to pay them. This means they get first dibs at any money the home warranty company earns from selling its assets.

Customers who want to request a refund for paid fees or reimbursement for costs they had to cover when the company didn’t fulfill its contract can file a proof of claim. This puts you on the court’s list of people that your home warranty company owes money . You will need to provide documentation of how much the company owes you, and you’re likely to be far enough down the list that the company might run out of money before it can pay you.

If your company filed Chapter 11 bankruptcy: Maybe.

When your home warranty company files for Chapter 11 bankruptcy, it plans to keep its doors open and continue making money. So it probably doesn’t want to let you get out of your contract. In that case, you’re unlikely to get a refund for the unused portion of your contract unless the company has determined that you qualify for a refund for a different reason.

How to know: If you want to get out of your contract, call the home warranty company if it is still answering its phones and ask if you can get a refund for any pre-paid fees. You can also read your contract to see which circumstances qualify for a refund. If the company isn’t answering the phones or responding to emails, consider filing a proof of claim form with the court in which the company filed for bankruptcy; you’ll have to search online to find which court is the right one.

Do I owe repair companies money if the home warranty didn’t pay them?

If your company filed Chapter 7 bankruptcy: Maybe.

You might be on the hook for completed repairs. If the home warranty company approved a repair and said it would pay the costs before it filed bankruptcy, it’s probably no longer required to pay the repair technician. Although it’s unfair to homeowners, that’s how Chapter 7 corporate bankruptcy works.

To know for certain, you’ll need to talk with a legal professional. In some cases, you might be responsible for the bill. But there might be circumstances where the repair company needs to file a proof of claim with the court to seek payment, in which case you don’t have to pay the company.

If your company filed Chapter 11 bankruptcy: Maybe.

Your home warranty company is technically still in business, so it’s responsible for some of its debts, which can include paying repair companies for approved claims. However, if another company is acquiring your home warranty provider, then who’s responsible for certain debts might change.

How to know: The best way is to call your home warranty company if you can get a hold of a representative. If the company is no longer available, you might want to talk to a legal professional to determine if you’re responsible for the bill.

What are my options for home warranty coverage now?

If your home warranty company shut down for good, there are a few things you can do to replace or find a substitute for your old coverage.

Open a high-yield savings account for home repairs. A high-yield savings account will get you a higher interest rate than a traditional savings account. That makes it a great option for putting away money each month to save up for future home repairs. A bonus to replacing your home warranty with a savings account is that there are no exclusions to the types of repairs you can use the money for!

Replace your home warranty with a different one. If you want a new home warranty, compare your options, and take your time looking at companies’ prices, plans and exclusions to find one that fits your needs and budget.

Research your repair options before you need them. You don’t want to waste time getting service company recommendations from friends when it’s already below freezing outside and your furnace just quit. If you anticipate needing certain repairs soon, do the research now. Look up companies in your area and read reviews to make a list of reputable companies that you can call if you do wake up to a chillier house than you expected.

FAQs

I was an Elite Home Warranty customer. Can I still file a Proof of Claim?

No, customers had to file Proof of Claim forms by January 30, 2026 to be included in the list of debtors that were owed money.

Can I sue my home warranty company after it's filed bankruptcy?

It depends on the circumstances of the company’s bankruptcy. Some courts will block lawsuits and other legal action against a company filing bankruptcy so that the court can determine the best way to go about paying creditors . If you are considering suing a home warranty company that is currently filing bankruptcy, you’ll likely need to speak with a legal professional to learn about any restrictions.

Next steps

Compare home warranty companies

Best Home Warranty Companies | Best Home Warranties for Appliances | Best Home Warranties for HVAC Systems | Best Home Warranties for a Rental Property

Look for a new home warranty company

Learn how to save for home repairs

Best High-Yield Savings Accounts | Best Home Improvement Loans of 2026 | How to Keep Home Improvements from Demolishing Your Budget

Article sources

NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines.

1. United States Bankruptcy Court, Northern District of California. What is the difference between bankruptcy cases filed under chapters 7, 11, 12 and 13?. Accessed Jan 29, 2026.
2. Congress.gov. Bankruptcy Basics: A Primer. Accessed Jan 29, 2026.
3. United States Bankruptcy Court, Northern District ofo California. What is a Proof of Claim?. Accessed Jan 29, 2026.
4. United States Bankruptcy Court, Central District of California. FAQs: Automatic Stay, What Is It And Does It Protect A Debtor From All Creditors?. Accessed Jan 29, 2026.