NZ Family’s $1M Nightmare: Builder’s Bankruptcy & Calls for Law Change
An Auckland couple are calling for changes to Recent Zealand’s bankruptcy laws after a builder they took to court was able to halt debt repayments by declaring bankruptcy, leaving them on the brink of losing their home. Andreas and Anna Goetz won a District Court judgment in February 2024 against Mike Greulich, ordering him to make weekly payments towards a $165,000 debt stemming from a stalled home build in Ōrewa.
The Goetzes had loaned Greulich’s company, Izodom Homes, $120,000 in early 2023, secured by a personal guarantee from the builder, in a bid to get the project finished before the birth of their second son. Though, after receiving only $3950 in repayments, Greulich declared bankruptcy in December 2024, effectively freezing the payments. While the Official Assignee initially ordered Greulich to resume the $500 weekly payments in early 2025, he then reported being unemployed, and the payments ceased.
“It sends a message that [the Official Assignee] has no teeth to manage bad debtors,” Andreas Goetz said. “And they can easily continue causing more financial waste and harm to everyone without consequence.” The couple allege that Greulich is continuing to operate in the construction industry through a company now owned by his ex-wife, shielding his income from creditors.
The Goetzes’ six-year ordeal began when they purchased land in Ōrewa with the intention of building a passive house – a home designed to ultra-low energy standards. The project quickly became beset by delays and cost overruns, compounded by a separate leaky building issue with an apartment they owned in Onehunga. At one point, the family was forced to limit themselves to one meal a day to conserve funds, and Anna Goetz battled breast cancer during the construction period.
Greulich, however, disputes the Goetzes’ account. He claims he spent $85,000 of his own money and utilized a $60,000 company overdraft attempting to complete the build. He attributes the project’s failures to Covid-19 lockdowns and errors made by other builders he engaged to assist with the work. He also alleges that the Goetzes refused to renegotiate the fixed-price contract when building material costs increased significantly after pandemic-related delays.
He acknowledged signing the personal guarantee at the request of the Goetzes, a decision he said caused conflict with his then-wife. Greulich denied operating through his ex-wife’s company, stating he had sought permission from the Official Assignee to work under that arrangement but was refused. He claims his ex-wife provides him with financial support, covering rent, living expenses, and pet care. He maintains he provided documentation to the Official Assignee demonstrating his inability to meet the repayment obligations after covering basic living costs.
“He ruined my whole life,” Greulich said, claiming the Goetzes’ actions have led to his unemployment. He stated he is now seeking new projects after receiving permission from the Official Assignee to operate as a sole trader under accountant supervision.
Kelly Serrant, regional manager of the Government’s Insolvency and Trustee Service, confirmed the Official Assignee is acting impartially and monitoring the case, but declined to comment on specifics due to privacy concerns.
The Goetzes’ case has drawn the attention of the NZ Initiative, a business-funded lobby group. Executive Director Oliver Hartwich described the situation as a “textbook example of a structurally broken” system, claiming that hundreds of millions of dollars are left owing annually to families, tradespeople, and the tax department. The NZ Initiative is advocating for changes to the Companies Act, arguing that directors should be compelled to place their firms into liquidation more quickly to prevent the accumulation of debt. Hartwich emailed the Goetzes directly, stating the case highlighted systemic flaws.
Despite their financial hardship, the Goetzes have continued to work on their home, with Andreas Goetz learning to plaster and waterproof the house himself. They hope their experience will lead to legislative changes and are seeking an extension to Greulich’s bankruptcy period, currently set to expire in 2027, until the debt is fully repaid. “If we can change the laws, then that would be my legacy,” Andreas Goetz said.