The former president of a ritzy resort community is taking action to get out from under continually mounting bills that he estimates amount to more than $7.3 million. He has filed forChapter 7 bankruptcy in order to address his debt burdens under the protection and supervision of the bankruptcy court.
This type of bankruptcy has become an increasingly common occurrence in Texas since the recent economic downturn that has been felt all over the country. While this particular situation deals with an individual in another state, it's something Texas readers likely will identify with.
The bankruptcy petition presented by this individual lists $1.15 million worth of property that he owns. This includes two homes, but does not involve any of the properties associated with the resort, which is owned by an association
The man says he is deeply in former president is severely in debt due to the mortgages on the two properties he has listed. He also reportedly owns several real estate businesses and holds part ownership in several other companies, which may be affected by the bankruptcy filing.
The filing lists the largest creditor as being a bank that is owed almost $4 million. Other creditor amounts included, $190,000, $71,000, $64,000, and $20,000. The petition also lists more than $200,000 worth of debt owed in state and local taxes. The former executive reportedly has sold a significant amount of his property in order to bring the total debt down from $16 million to $7 million.
Chapter 7 bankruptcy only results in the liquidation of assets that are listed in the filer's own name, according to Federal Bankruptcy Code which applies to all states. That's why the properties associated with the resort are not affected by this action. The resort association that does own the facility is made up of hundreds of private owners and investors.
Source: WSLS 10