Question

I am unsure if you can advise me as I think I know what my only option is. I am or was a property developer, and bought a piece of land about 4 years ago, and had the existing houses demolished. They were just shells at that point. I had the land cleared and began construction to build a block of flats. Then Covid hits and everything comes to a stop. I tried to begin work again once the restrictions were lifted, but finding building materials became very hard to find, plus when we did get materials, the costs were much higher than I had planned for. I owe hundreds of thousands of pounds to banks, personal investors, and even family. I cannot see a way out of this as I cannot afford to complete the project which would allow me to repay the debts. I am thinking bankruptcy.

Answer

Hi,

I understand your situation, and there are many other developers in the same position. They were developing properties only to have it all grind to a halt due to the Pandemic.

Does your company have any assets they can sell? This may help to reduce your debt. Unfortunately, it may also close your business down.

Have you spoke with the bank(s), investors and those you owe about the situation?

Do you own any property yourself?

Are the company loans and debts in just your name?

Bankruptcy may be an option, but it will depend on a few factors based on my questions above.

Get back to me and we can look closer at your options.

Regards,

Jon

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