Bankruptcy is not a subject to be taken lightly, and for property investors, it’s the subject that is most commonly misunderstood. Wrapped in stigmas, a word bounded around often as the definition of failure, some investors useit as a last resort when they have nowhere else to turn.

Bankruptcy in business ‘works’, if left with no alternative. Bankruptcy in property does not. It’s by no means straightforward or the best option, and often leaves a more complicated problem than the landlord began with.

The primary misconception is that bankruptcy for a property portfolio holder will remove all outstanding debt. Unsecured debt, yes. Secured (mortgage) debt, no.

If a property investor has a portfolio of multiple properties, they could be chased multiple times over the next decade or so before the last of the mortgage debt is finally written off – particularly where more than one lender is involved. To reiterate the lunacy of this point, after having the stress of being made bankrupt once, the investor is often still chased for the remaining debt.

Sound unfair? It is – we’re not a fan of this system and we’ve been fighting for quite some time on behalf of our landlords to tackle it. Believe me, it can’t last. We are seeing history in the making, and we’re likely to see some significant changes in the next 5-10 years in how the banks go about their business.

The only way to remove toxic property debt is through direct negotiation with lenders, which is where we are in our element. The directors of these institutions won’t speak to Joe Bloggs and it most certainly takes a degree of corporate cajoling to get them to play ball.

So if you were still sitting there with portfolio debt, not sure where to turn, I’d urge you to get in touch. We’re well au fait with the dirty tricks these lenders have up their sleeves, and our solution accounts for all of them.
Please don’t wait for things to really kick off before you get in touch, because at that point, it’ll be too late.

Feel free to give me a call on 0871 221 6536 or drop me an email using our Contact form and we can take you through your options. We’ll happily offer you a free consultation over a brew. We are now taking bookings so feel free to schedule an appointment and I’m sure you’ll be glad you did.

Until next time.

Nicholas Messenger

This entry was posted in News and tagged Bankruptcy, Bankruptcy in business, Bankruptcy in property, complicated problem, direct negotiation with lenders, free consultation, Lanlords, mortgage debt, multiple properties, nowhere else to turn, outstanding debt, portfolio debt, property investing, remaining debt, stress of being made bankrupt, toxic property debt, Unsecured debt, writing off debt. Bookmark the permalink. c