In the UK, only human beings can go bankrupt - companies go into administration, receivership or liquidation - see navigation block above
If you are starting a business, you MUST do so via a limited company - it is insane to trade as an individual (see 'Stuff you won't Believe' below)
If you want to know more about this depressing state of affairs, see bankruptcy
In 1981 I went to Atlanta, Georgia for a two week holiday vowing not to look at real estate. Of course, afer a week I was involved and then on the terrible treadmill of flying backwards and forwards to the USA (trust me - you don't want to do that unless you have a Global5000 - I almost got one last week for $5m but missed it)
Along the way, I was introduced to a twenty acre development site (Horizon South) on the sea front in Panama City, Florida (2,000 miles away from the State of Panama - pay attention). I agreed a deal and then flew out for a couple of days to sign the contract. I then hung around for 6 weeks with the contract always due to arrive "tomorrow" (just like BREXIT).
Finally it arrived and I asked the lawyer for an "off the shelf company". He was baffled and said it was not possible to do that in the USA. As it happened he was totally wrong - I could easily have bought a Delaware Corporation off the shelf but I did not know that. So I signed in my own name.
The twenty acres cost $400,000 and I put down $75,000 and borrowed the rest from the owners who were in Chapter 11. The crucial part was that the $425,000 debt was only secured on 15 acres of the land so I had 5 acres totally clear and paid for.
Literally 24 hours after the purchase I closed a deal to sell half an acre for $80,000. That meant I had 4.5 acres of seafront land totally for free.
At that point I should have gone home. Or better, bought 1,000 acres of land surrounding the world's busiest airport for $1m (yes, really - wrapped right round Atlanta Airport - probably worth $500m today). I knew the airport deal was brilliant but was short of $1m. Damn.
Meanwhile, in Florida, I was bullied by other people into building houses - twelve to start with. After a few months the bank withdrew finance and a guy who was involved sued me for $3m. Yes, me personally. I was in very deep shit.
In the UK I rang a guy whose brain I respected (there are not many of them around) and we met at Euston Station at 9am and had breakfast in the cafe. At 1pm we had lunch and at 8pm we had dinner - all at the same table. And after 12 hours of intensive scheming we had an extremely cunnynge planne.
And the plan worked. The guy suing me settled for $500 per house built and the builder bought me out for $100,000 clear (he assumed the debt). Payment was $50,000 in cash and a postdated cheque for $50,000 drawn on the First National bank of Enterprise, Alabama. So I drove 400 miles to Enterprise, Alabama and sold the cheque for $42,000 to the President of the Bank in a face to face meeting.
Then I went home and stayed home - do NOT do it in your own name.
Bob Cory
Modified on 09/09/2019 at 08:30:49 by ℗ Bob Cory