Default on my property….reposession with a difference


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    • #54381

      The credit crunch has had a devastating effect on many of us. I, like many people, have been affected by this in ways that I could not have imagined two years ago. So maybe someone out there can help me with some advice in my situation.

      I bought a property in Spain with my now ex-partner (we never married) just over two years ago. When we did this, we were advised by our lawyers to set up a Spanish Company to run the property through, which we duly did.

      My ex-partner (but still my business partner) now finds herself in a position where she is unable to make any further payments towards the mortgage. I can’t afford to buy her out, neither can I make the entire payments myself and so I am left in a position where I feel I have no choice other than to stop paying the mortgage.

      I fully appreciate that this means the bank will repossess the property, which is a shame, as the apartment is superb. Although I have ask our lawyers what the implications are in Spanish law, they have not been very clear in their responses.

      I’m sorry this is all a bit long winded, but basically what I need is advice on the following:

      1. What are the financial implications to me, and my ex-partner, personally after the Spanish company has been wound up. Are we still liable to money owed to the Bank or is it limited because of the Spanish Company we set up?

      2. I have been told that I/we will have to pay 135 Euros to start the winding up process. Are there any other costs that we may be liable for?

      My situation appears slightly different from the other posts I have read on the forum, as many of the posts I have read concerning repossessions are by people who do not have a company through which their property is run. I understand the position these people are in, having read the responses to their posts. I am just trying to clarify my position.

      Can anyone advise?



    • #86735

      Hi – you really need to check what your liabilites are fully with regards to the company. Usually and SL has an administrator who becomes fully liable for all and any debts. This may or may not be limited to the financial liability of the company

      Your lawyers should be able to advise, alternatively a good gestor will look at the escritura and tell you what if any your liabilites are.

      You may have to register as bankrupt to avoid further claims, but its not like in the UK – its much more regulated

      Good luck

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