Tennessee Charter School Declares Chapter 7 Bankruptcy

Written by CFB Blogger. Posted in Blog

Boys Prep, a boys’ charter school located in Nashville, Tennessee, has filed for Chapter 7 bankruptcy, reportedly owing over $159,000 to a number of creditors. Reporting for Nashville Scene, Andrea Zelinski writes that, according to an August filing in the Middle District of Tennessee federal bankruptcy court, Boys Prep had debt of nearly $130,000 to date in 2014. The school had $60,000 in net revenue in 2012 and $50,000 in net income in 2013. Bankruptcy court records reveal that the school’s largest creditor is Daymar Properties, the company that owns the offices that the school used during its first year. Boys Prep broke its lease with Daymar, resulting in a dispute over the remaining rent. The case was eventually settled out of court, although it remains as a $32,500 debt on bankruptcy records. If this debt has already been paid, the bankruptcy case will be amended accordingly. The news account reports that bankruptcy documents show that Boys Prep owes Teach for America $15,000 although the group’s Executive Director said that they have already written off the recruitment and teacher support fee. Other creditors included in the bankruptcy filing are RJ Young, Pinnacle Bank, Grayline and Metro Schools. Boys Prep closed at the end of the last school year, buckling “under the weight of mismanagement and academic pressure”. Metropolitan Nashville Public Schools put Boys Prep on warning for low test scores last fall, later learning that the troubled educational facility had inflated its enrollment numbers and was falling short on individualized education plans for special needs students. For experienced and knowledgeable Chapter 7 or Chapter 13 personal bankruptcy assistance, you can rely on the attorneys from Client First Bankruptcy who have helped thousands of satisfied clients discharge their overwhelming debt. For your free initial consultation, please call our knowledgeable and compassionate lawyers toll-free at 800-383-6004. We answer our phones Monday-Friday from 8:30 a.m. – 6:00 p.m. And log onto www.clientfirstbankruptcy.com for vital and timely bankruptcy information 24/7 so you can get the information you need when it is most convenient for you.