Whether you have been struggling to make ends meet for years or have been a prolific real estate mogul for over half a century, the necessity to file for bankruptcy can happen to anyone. This February, Chicago Business reported that condominium developer Nicholas S. Gouletas has filed for bankruptcy. His storied career began in the 1960s and he was dubbed the Condo King back in the 1980s and 1990s due to his monumental career in condominium development. His firm, American Invsco, has either built or developed apartments into 45,000 condos around the nation. With so much success for so long, how can someone end up needing to file for bankruptcy?
Major Setbacks Due to a Series of Poor Decisions
Gouletas has had many setbacks in recent years, which includes the unfortunate purchase of an apartment portfolio back in 2013 for just under one-billion dollars. That failed venture, and others, were not something that Gouletas could bounce back from. From there, he was sued by multiple parties for failing to pay legal fees and loans.
Failed $950 Million Condo Portfolio
Gouletas was unable to finance the $950 dollar condo portfolio that he sought in 2013, which included 3,886 units around the nation. When the deal fell through, he was not able to pay the creditor who had loaned him the earnest money required as the down payment for the condo portfolio. He lost more of his property and apartment complexes when he put them into Chapter 11. From there, he was sued by a Chicago law firm in 20145 for not paying his 2013 legal fees of $61,000. Next, he was sued by PrivateBank & Trust because he had failed to make any payments on the $200,000 personal loan he had been given in 2012.
Chapter Seven Bankruptcy
A Chapter Seven bankruptcy petition was filed last January by one of Gouletas’ creditors, and bankruptcy protection was filed in October, not by Gouletas, but by a venture group affiliated with him that owned condos in the Chicago Century Tower.
Overreaching Financial Limits
Gouletas did not change is purchasing habits when he was hit hard by bad times. In a Chicago Tribune article from 1992, Gouletas said, “If you continue to maintain the same standards in the bad as in good times, then you will have the support of the individuals and institutions that you had before.” That piece of poor wisdom ultimately saw his demise. When we make large purchases such as cars or homes, there is considerable risk involved. While the numbers may add up accordingly at the time of purchase, the loss of a job, a major medical setback, or another large loss to personal finances may create problems when paying the mortage. Similarly, we have to pay attention to smaller purchases such as how much we spend eating out, technology purchases such as new phones and computers, and other costs that can mount up. While it is incredibly unlikely that any of us will make a risky billion dollar purchase in our lifetime, paying close attention to the smaller stuff can be equally important in terms of personal financial stability.
If you have had financial trouble and see no other logical place to turn, bankruptcy may be your best option. Contact one of our personal bankruptcy attorneys with the Law Offices of Roger Ghai, P.C. today to discuss your future and to get you out of the financial hole that you have been consumed by.