Gipson, Norman & Root- Bankruptcy Attorney 281-823-7016 or 888-512-6044
Free 30 Min Consultation
Helping You Get To The Root Of The Problem

Former bank director files for Chapter 13 bankruptcy

Even bankers are legally responsible to their debts owed to banks. Even if the debt is owed to the same bank a banker had worked for as a top executive, he or she is still liable to the amount owed on a loan in Texas or elsewhere. This is the case with a former director of First National Community Bank (FNCB) who recently filed for Chapter 13 bankruptcy due to overwhelming debt owed to his former employer.

The former director is currently owed $60,230 of deferred compensation from the bank, which he has listed as an asset in his recent bankruptcy petition. However, he will likely not be able to obtain this compensation, since he still owes the bank over $4 million in loans he has defaulted on paying. The former director lists FNCB as his major creditor with three total loans. The man is attempting to have a judge discharge the debt.

The reason that the bank has not paid deferred compensation to the former director is because the bank was ordered by the Office of the Comptroller of the Currency to halt payment of deferred compensation to former directors. In a previous Chapter 7 petition filed with his wife, he listed $510,146 in assets and $5,512,827 in liabilities. A Chapter 13 filing in early 2012 listed between $100 million and $500 million in assets, however the man later withdrew the filing due to an error.

A Chapter 13 bankruptcy in Texas is designed to reorganize debts in order to provide a more manageable payment plan for the petitioner. This can provide a way for the filer to gain relief from the overwhelming debts that are causing financial hardship. Some of the debts may even be partially or fully discharged. However, a court judge will ultimately decide how to deal with the unpaid debts.

Source: The Times-Tribune, "Former FNCB director refiles for bankruptcy," David Falchek, Jan. 10, 2013

No Comments

Leave a comment
Comment Information

CONTACT US NOW

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

Privacy Policy

Bankruptcy Blog Bankruptcy Faq

Privacy Policy | Business Development Solutions by FindLaw, part of Thomson Reuters.