Former Politician and Convenience Store Mogul Files Bankruptcy

Controversial convenience store magnate Christy Mihos' bankruptcy filing is the latest fallout from his financial and domestic tailspin in the past several years. First Mihos' adhamently denied assaulting his wife, now he is facing accusations from more than a dozen creditors who say Mihos' owes them money.

 

The former Massachusetts Turnpike Authority vice chairman and gubernatorial candidate  filed Chapter 7 bankruptcy for Hyannis-based Christy's of Cape Cod LLC on Jan. 31 in U.S. Bankruptcy Court in Boston, according to court documents. He cited between $1 million and $10 million in debt owed to more than a dozen creditors.

 

Mihos sold off 11 of his 13 convenience stores on the Cape to Hess Corp. in 2009. He closed the other two stations a year later.

 

The former  was hit by a slew of lawsuits and claims of financial malfeasance during his latest bid for the state's highest office in 2010. After losing in the primary, Mihos, 63, continued to fail to meet his financial obligations, according to lawsuits by private creditors and Massachusetts Attorney General Martha Coakley.

 

A year ago, Mihos' private life began to unravel. In February 2012, he was accused of assaulting his wife in Florida as well as in July 2011 at the couple's West Yarmouth home.

 

During the investigation, Mihos' wife, Andrea, told police she was concerned about her husband's mental health and claimed he had hired strippers, prostitutes and porn stars for sex.

 

After the allegations, Mihos released a statement admitting to mistakes in judgment and said cancer surgery and a serious fall in December 2009 had changed him.

 

Mihos' bankruptcy lawyer, Jeffery Johnson of Centerville, declined to comment through a representative reached at his office, but Mihos' creditors are set to meet with the bankruptcy trustee later this month.

 

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Posted in business bankruptcy , Chapter 7 Bankruptcy , christy mihos , US Bankruptcy Court

Federal Judge Allows Popular PA Ski Resort to be Sold at Auction

Scranton, PA -  A federal bankruptcy judge had the final say, allowing bankruptcy trustee Gary Seitz to solict bids for the purchase of Northwestern Pennsylvania'a Sno Mountain to satisfy its creditors.

The Ski Resort's finances were a slippery slope themselves, as the resort has accumulated over $24 million dollars in debt and nearly $420,000 in tax liens. The list continues with over $400,000 due to the IRS and a bill more than double that size owed to the Commonwealth of Pennsylvania.

The resort filed for Chapter 11 bankruptcy protection in October, and court records list the resort with assets of only $171,562.00.

The sale is expecetd  to be completed no later than April 8. In the event there are no buyers, the resort’s largest secured creditor, DFM Realty, will be allowed to execute on its debt.

Snö Mountain is still scheduled to open for the winter season on or about Dec. 20, resort officials indicate, and the judge's order permits the resort to use its cash fund its operations this winter, including paying 13 full-time employees and renewing its insurance policy that expires this month.

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Posted in business bankruptcy , Chapter 11 Bankruptcy , pennsylvania bankruptcy , ski resort bankruptcy , sno mountain bankruptcy

TaxMasters Files Bankruptcy

HOUSTON (AP) — TaxMasters Inc. has filed for bankruptcy protection following a legal challenge from Texas prosecutors who say the company's famed TV commercials mislead potential customers.
The Houston-based tax resolution company filed Chapter 11 reorganization documents in federal court on Sunday.
The filing says TaxMasters has assets of less than $50,000 and estimated liabilities of $1 million to $10 million.

Company founder and president Patrick Cox fronts the company's national advertising campaign.
KHOU-TV (http://bit.ly/zaIvyT ) says Texas is suing TaxMasters for violating the Texas Deceptive Trade Practices Act. It says TaxMaster commercials encourage people to call for a free consultation with a tax specialist but the calls are answered by salespeople unqualified to provide tax advice.
A TaxMasters spokesman and attorney did not immediately respond to calls for comment Monday.
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Online:
http://www.txmstr.com/
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Information from: KHOU-TV, http://www.khou.com

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Posted in business bankruptcy , Chapter 11 Bankruptcy , tax masters bankruptcy , texas bankruptcy

Oregon Sentate Changes Business Bankruptcy

According to an article on Oregon Live, the Oregon Senate on Monday unanimously voted to increase the dollar value of business tools that can be exempted from having to be sold in bankruptcy cases.

Senate Bill 935, which now moves to the House, raises the exemption for business tools - such as for plumbers or auto mechanics - from $3,000 to $5,000.

Sen. Richard Devlin, D-Tualatin, said the bill would help struggling small businesses maintain the tools they need to get back on their feet after a bankruptcy.  He said the value of the exemption had not been raised in Oregon in 20 years and that Washington and California have higher exemption limits.

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Posted in business bankruptcy , Oregon Sentate , Senate Bill 935