Creditor's meeting

 Apologies if there has already been a thread on this, I did have a search but didn't find a thread on this in particular.

Our situation is that the judge has found in our favour initially and then twice again at appeal.  However, the developers are in administration. Ugh. Bad news.

Anyway - on May 17th there is a creditor's meeting. That in itself is fine, although I have read that there is little hope in us getting any money back via this route.

My immediate problem is that the solicitor wants one thousand euros to attend this meeting. This is after promising that he wouldn't ask for any more money, as we have already paid him ten thousand euros which has taken us to the bottom of barrel.  

By the way, the solicitor says that he has also invested his own money in this case.

I suppose my question is - are there any pointers regarding this creditor's meeting that would indicate to me it is worthwhile the solicitor attending?

Maria has already been kind enough to indicate that we need to be preferred creditors but when I mentioned this to the solicitor, he said he didn't know anything about that.

Just any ideas would be welcome or a cool flanel for my troubled brow.

Thanks. 

hi colleen

10k is outrageous.

our builder was liquidated and it cost me 3k to go after them, which was a waste of time.

then I switched lawyers to guadalupe (GM Legal)to try and get cash back through a generic Bg, cost- 750 euro

the case seems to be going well, we get regular updates and were promised no extra costs which aside from documents to send etc has been the case.

I would be tempted to give the details of the original lawyer her as well and get him checked out, just  a thought

good luck

 HELLO COLEEN , 

FIRST POINT - in spain you must register your claim within 30 days of the administration.

2nd point - to be a preferential creditor this must be done with all the proofs of payment in original form.

3rd point - a barrister must represent you in the liquidation you cannot do it without one

4th point - if your lawyer doesnt understand spanish law in this matter change to one that does because if you become an ordinary creditor for sure you will never see a penny

good luck

 HELLO COLEEN , 

FIRST POINT - in spain you must register your claim within 30 days of the administration.

2nd point - to be a preferential creditor this must be done with all the proofs of payment in original form.

3rd point - a barrister must represent you in the liquidation you cannot do it without one

4th point - if your lawyer doesnt understand spanish law in this matter change to one that does because if you become an ordinary creditor for sure you will never see a penny

good luck

 Many thanks for the replies.

The 10k is very high, especially as we were originally quoted 5k.

However, in mitigation for the solicitor, I believe that the initial figure is derived from how much is being sought. Also, over a certain amount, then a barrister is required.  The 10k also included two appeals (both won) and an initial creditors meeting. 

We now have a second creditor's meeting coming up on the 17th May, which the solicitor who is Spanish and in Spain by the way, says he is required to attend. 

Regarding preferred and ordinary creditors, I have broached this subject with him twice and he is evasive by which I deduce we are not preferred creditors.  Following our meeting with him this week, he is clearly not an 'expert' in this field but it is rather late int he day to change solicitors.

However, I have seen the list of creditors which runs to two A4 sheets. Our name is at the very bottom.  !!  On studying the list of names, I see that all the others are companies except the last three which are individuals. Out of those three, there is just one spanish name, an English couple and us.   

I made a note of their names with the aim of contacting them, but so far have been unable to find them on the internet.

Another point is that the solicitor says that the developers have enough capital to pay everyone (no idea if he is correct in this or just guessing). But at the creditor's meeting, there will be a proposal as to how it should be divided.  Obviously they don't have the cash to pay everyone or there would be no point in a meeting.

So it could be that the vote goes with an agreement that they should sell their assests as soon as possible which would be at lower than their value and consequently they don't have enough to pay the creditors. Or that we wait X years in the hope that more apartments are eventually sold at a higher price which, along with the assests, will bring the actual cash figure nearer to what is owed.  But that's more waiting and a gamble and still under the courts with more associated costs involved.

Coleen:

Becuase of (1) law establishing with imperative, non renounceable character, your right to have a guarantoor of those amounts paid in advance in off-plan purchases and (2) the residual qualification that off plan buyers´credits get in creditors meeting, I do not recommend you to put all the energies and hopes in the creditor´s meeting.

Work for the credit to be included, yes but place all teh forces in the action against the finantial institution which received yoiur deposits or which guaranteed them ( if known).

 Thank you Maria as always for your informative help and suggestions.

There is one thing we know for definite - we will not see the return of 100% of the monies following the creditor's meeting and I am guessing it is most likely to be substantially less than 50% (if anything).

We are now mentally gearing ourselves up to pursuing the bank, depening on the outcome of the creditor's meeting.  I presume it is not possible to have two actions at the same time?

 Yes, it is possible to conduct the two actions at the same time.

Kindest,

Maria

 Quite surprised to learn that you can have two actions at the same time.  But that is good news and  will certainly come in useful if (when) we get a rubbish offer following the creditor's meeting.

Has anyone been to a creditor's meeting by the way?  

Apparently, you either have to go or have a legal representative attend. Our solicitor is going (I am reeling from what he is charging us) but am quite tempted to go ourselves as well.

Just wondering if it is worth it.  One minute the solicitor tells us that he wants to be 'active' at the meeting and that he might need to contact us urgently to discuss any offer.

When we suggested going to the Concurso as well, he says that there is no point us coming because there might be a hundred people there and it's not as if we can contribute by saying anything and we will will have a couple of months before we need to respond to any offer.