Archive for August, 2008

WHAT TO DO IN CASE YOUR DEVELOPER GOES TO LIQUIDATION

August 9, 2008

If you have made a down payment on a property and the developer goes  bankrupt you will naturally ask yourself what will happen to the funds paid.

You will have to be included in the list of the developer´s creditors and this has to be done by a solicitor and by a procurator within a period of one month from the last publication of the bankrupcy.

Your legal representant will have to send a letter to the administrer of the bancrupt that describes the debt they have with you ( the funds paid to the developer, the contract signed, dates and all the evidences  and facts) including your personal details.

In case you are a preference creditor you will have to present all the evidences that proove this fact, for instance if you have an embargo you will have to present the court decision, if you are an employee you will have to present your labour contract…

The administrator of the bankrupt will analyse all these documents and aks for more documentation if necessary.

The judge will be handed over a list of the common creditors with the amount of each debt, another list with the preference creditors and finally the list of all the assets of the developer.

The judge and the administrators will share the assets between the creditors and the process may take several years depending on the company size.

If you have any queries please do not hesitate to contact me at “jose@lawfirminspain.com

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August 9, 2008

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