Jump to Navigation

Developer files for Chapter 7 after failed projects

For many in New Jersey, the choice to file for bankruptcy is not easy, but it is often necessary. Faced with overwhelming amounts of debts that cannot be repaid, a person may seek a Chapter 7 bankruptcy in order to get a fresh financial start. This new start can offer relief to those drowning in personal debt.

A Chapter 7 bankruptcy can offer a person in New Jersey and elsewhere nearly complete relief from their debts in many cases. Once a discharge is issued, a person is no longer liable for the debts that were included in the bankruptcy filing. Additionally, there may be property that is able to be kept using bankruptcy exemptions.

One man's situation shows how bankruptcy can be of help in dire situations. The Las Vegas developer filed for Chapter 7 bankruptcy recently after he became unable to repay his large debts. The man had guaranteed loans personally that were used to develop large commercial projects. When the recession struck and the real estate market collapsed, he, like many others, were unable to afford the loan payments.

Filing for a bankruptcy, the developer reported that he had only $4,738 in assets. This was in stark contrast to his nearly $507 million in debts. He additionally reported that he spends $4,305 each month -- a sum which is being covered by a credit entity.

Before the recession, the developer sought to develop a $2 billion project to be named City Crossing. When that failed, the development filed for bankruptcy in 2008. The developer did not file for personal debt relief under Chapter 7 until April 23 of this year. Like others, he likely attempted to repay his debt prior to facing a bankruptcy. Like many in New Jersey who go through the bankruptcy process, hopefully this man will be able to start over and regain his financial footing.

Source: Las Vegas Sun, "Las Vegas developer lists over $500 million in debt in bankruptcy filing," Steve Green, May 8, 2012

No Comments

Leave a comment
Comment Information

Contact Us

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close
Subscribe to This Blog's Feed Visit Our
Bankruptcy Law Website

Office Location

Law Office of Robert Braverman, LLC

South Jersey
1060 North Kings Highway, Suite 333
Cherry Hill, NJ 08034
Phone: 856-254-2196 
Toll Free: 800-759-0767
Fax: 856-414-1230
Map & Directions

Willingboro Area Office
Law Office of Robert Braverman, LLC

1848 Burlington Mount Holly Rd (Route 541)
Mount Holly, NJ 08060
Phone: 856-254-2196
Toll Free: 800-759-0767
Willingboro Area Office

Center City, Philadelphia
15th Floor
1515 Market Street
Philadelphia, PA 19102
Map & Directions

Northeast Philadelphia
7909 Bustleton Avenue
Philadelphia, PA 19152
Map & Directions

FindLaw Network