Bankruptcy of Speculators
It is a lovely culture that supports handshake agreements for "deals." Not too many years ago such a culture existed in Dallas and to some extent still does. The impetus lies in the concept of credibility and reputation. After these two diamonds are established, their true worth becomes readily apparent. They will open doors that are shut to others and they yield far more than the pleasant smile that accompanies the declined entreprenur to the door.
But, nice as it is, a handshake agreement can be tricky. It can be tricky because when money is tight, things get concealed and half-truths arise even among friends. And the diamond of integrity gets sold for a profit. In this environment certain questions that are never asked are - exactly that - never asked.
Where did the property come from? May I see the settlement sheet? What is the real value? Who paid for the appraisal and who did it? Is the lender really as patient as you say? Are you thinking about a bankruptcy? Why was this previous sale not recorded? Where is your profit - all of it? Who is this New York lender? Or perhaps the unthinkable, "Are these liens really real?" or "Why do you want me to do this?"
We bankruptcy lawyers are a cynical lot, indeed. Perhaps it is because we see the deals after it is too late to ask the questions.
Otherwise, the bankruptcy of speculators is rather straightforward, depending on what they own, and what they are owed, when they file.