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Flat - file for bankruptcy of builder

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  • Flat - file for bankruptcy of builder


    I would like to tell you my story to receive the best possible advice from you.
    Last year (Jan08) I bought a flat (not built yet); it’s progressively built and each step completed would lead to a call of cash from the builder to my bank. The issue is that my builder entered into file for bankruptcy in Oct2008; then a legal person was responsible for the accounts of the builder and for defending all owners of my building, in front of another legal person on the side of counterparties where the builder has some debts (and who wants the liquidation of the company).
    The building and my flat are built at 60% only in reality, whereas a paper was sent to me / my bank to get from me around 85% of the money of the flat; of course I was not aware that the guaranty taken by the builder was not the best since the bank is not entitled to put the rest of the money for the building.
    It was a meeting with the legal person and the builder in Jan2009 to speak to owners about the issue and the possible solutions; they said that the builder had some money by some properties / other flats to sell, and even other companies in another country. So they just had to restructure his accounts few months to re-start the business; however months are passing by and nobody is buying any extra property / flat to fill the gap of money in the accounts.
    Owners met few times to discuss and plan some actions but no real action was taken.
    A final decision will be taken in court at the end of April2009 to decide for the fusion or not of the accounts of different companies in different countries or to liquidate the company which would be a disaster.
    My question will be the decision to choose if I need to wait for that decision at end of April 2009, if I need to complain to Court in group with the other owners or if I need to complain to Court by myself to get back my money even if that could take time? I would not like to wait too long as well but it’s hopeless to get back money if liquidation.
    Thanks in advance for any help / advice you may have for me.


  • #2
    Where is the flat? Nobody can answer if they do not know which legal system applies to the contract.

    If in England & Wales is the development registered with NHBC? I am assuming it is not in England/Wales because I cannot imagine an English solicitor advising his client to enter into this kind of deal for an English property.
    RICHARD WEBSTERwww.rwco.co.uk
    As a conveyancing solicitor I want to be helpful (England/Wales only) but can't accept liability for this.


    • #3

      It's in France.