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Prominent Forest man files for bankruptcy

A man who had been president of a popular resort facility a few hours away from Washington, D.C., in Virginia has submitted paperwork for Chapter 7 bankruptcy. The man, who had overseen the resort, said that the bankruptcy should not affect the vacation facility because it is operated by an owners' association.

Reports show that the man's financial obligations add up to more than $7.3 million. He filed for bankruptcy in late May. Because he filed for Chapter 7, the man's assets may be liquidated in order to pay his debts. The only assets that will be affected will be those held in the man's name, not those associated with the resort.

The man reportedly owns property in the area valued at $1.15 million. He also owns a home in a nearby town. Both of the properties have been heavily mortgaged, according to financial experts.

Among the more than 200 creditors named in the filing are several banks, tax officials and land-holding companies. The majority of those firms are located in the Lynchburg area, according to reports, and they include at least three local property developers. The man also has holdings in some independent companies in the area, which may be considered as assets.

The largest debt owed is to the BB&T Bank, which has claims to the man's property that totals more than $4 million, according to reports. He also owes approximately $200,000 in state and local taxes.

Legal representatives have said that the man's original debts topped $16 million, but he was able to reduce those by more than half by selling many of his holdings. His lawyers say that he will likely be back on his feet financially in short order.

Source: WSLS, "Forest man files $7M bankruptcy; resort not involved, lawyer says," Ray Reed, May 31, 2012

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