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Park Girl Sales LLC proceeds with Chapter 7 bankruptcy

Texas residents may be interested in the bankruptcy filings by the former operator of a mobile home business based in La Feria. Doing business as the Park Girl, the operator is facing civil suits and criminal charges alleging that she deceived customers and stole from them. The criminal charges involve between $100,000 and $200,000. The woman has placed cashier's checks totaling $100,000 with the court to settle claims.

The former Park Girl Sales LLC operator stated that the business was run from a relative's property and that she was unable to deliver ordered mobile homes because the relative had locked her out of the property. Several civil suits have been filed by more than 40 customers who claim that they have been defrauded.

Citing an inability to find employment, the former operator was not able to finance the reorganization plan for a Chapter 11 bankruptcy she had originally filed, and it was converted to a Chapter 7 liquidation bankruptcy. She filed for bankruptcy in the West District Court of Texas, and Park Girl Sales LLC filed for bankruptcy in the Southern District Court of Texas. So far, 85 creditors have come forth with $3.1 million in claims, and the parties have been directed into arbitration by the court.

Although bankruptcy has historically been stigmatized as a last resort, in the face of overwhelming debt or personal financial setbacks, it may be a way to obtain a fresh financial start. Chapter 11 proceedings allow businesses to continue operating and reorganize debt with creditors who will generally be amenable to restructuring debt. Chapter 7 bankruptcy proceedings liquidate assets and distribute proceeds to creditors. For those struggling with debt, creditor harassment and wage garnishment, bankruptcy may be the most sensible option to obtain debt relief.

Source: Valley Morning Star, "Park Girl faces $3.1M in bankruptcy claims", Emma Perez-Trevino, December 27, 2013

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