My clients bought a block of land with a friend’s company, then went guarantors on a another loan to the company, and ended up owing the bank $1 million after the friend died a bankrupt and his company went broke and was facing deregistration.
Well, after:
- stopping ASIC from deregistering the company;
- doing a deal with the bank to reduce the debt to $500k;
- obtaining 2 default judgments against the company;
- getting permission from the District Court to allow the Sheriff to sell the property to my clients for $10k but subject to the bank’s mortgage, when the value of the interest was $225k;
- getting an extension of time to pay the bank; and
- my wife and I drawing down on our mortgage to lend the clients some of the money needed to pay out the bank, because no bank was interested in refinancing a loan which was in default,
… the saga finally came to an end last week when the Sheriff transferred the interest to my clients.
Now they can go the bank to refinance a loan which is not in default.
For resolution of messy disputes, especially those which require some thinking outside the box, see Michael Paterson & Associates.