Owner being declared bankrupt

H

Hairy Bikers

Guest
Hi

An owner who owes significant management fees has told our solicitor that apt is rented out through a receiver. He also says that he going to be declared bankrupt soon so he is unable to pay monies owed. He is in neg equity on property.

Does anyone know where we will stand if he is bankrupt ?

Thanks
 
The negative equity isn't actually a factor in this and the Management Company is probably the safest of all his creditors. The bank will repossess the property but they will only own his lease. They will be liable for the fees and won't be able to re-sell the property without discharging the debt to the Management Company.
 
shesells is completely correct, it will be part of the original contract and lease that all outstanding fees are brought up to date prior to the completion of sale.
 
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