Wednesday, May 23, 2012

Personal bankruptcy filed by many in construction | Louisiana - Blog

Developers of large commercial entities such as casinos were riding high prior to the recession. By taking on loans for construction, many funded the development of new buildings in local communities. However, when the economic recession hit, many of these same developers were forced to declare bankruptcy after they were unable to continue construction on their projects.

Louisiana readers may be interested to learn about the recent bankruptcy filing of a man that was responsible for building large casinos. The developer filed a Chapter 7 bankruptcy on April 23. He listed his assets as a mere $4,738. His debts were a large $506.5 million. Also, monthly expenses were listed in filed documents at $4,305 per month.

Prior to the economic downturn, the developer created large commercial and casino projects in Las Vegas. These included the Centennial Corporate Center and the Rainbow Sunset Pavilion. During good construction and real estate times, he became a personal guarantor for loans for a new project. Unfortunately, the real estate and credit market declined rapidly, and the developer was unable to finance construction of the project; the project declared bankruptcy in 2008.

Like others who seek bankruptcy protection, the man in this case was unable to pay all of his debts. When the amounts to repay became overwhelming, fortunately, he sought protection from his creditors through a bankruptcy. In most cases, this type of financial move will assist one in making a fresh financial start. Therefore, if you are similarly experiencing serious monetary problems, you may want to consider your debt-reducing options.

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

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