Land contract gone bad?

I have a friend...and yes, it truly is a friend....who sold a house to a company on a "land contract." Thi company has purchased at least 26 houses like this, and the company has now gone bankrupt. How does the original seller keep the property out of the company's bankruptcy. The contract says that if he misses two payments, the contract is null and void. And technically the bank still has the title because the house is not sold but the auditor has the property listed as the company.