Why “Y” Filed Chapter 7 Bankruptcy

Written by CFB Blogger. Posted in Blog

The YMCA of Florida’s Emerald Coast has recently filed for Chapter 7 in U.S. Bankruptcy Court in Pensacola, Florida. The three YMCA’s involved in the bankruptcy are located are located in Destin, Fort Walton Beach and Crestview, Florida, all in Okaloosa County. According to an article on www.nwfdailynews.com by Tom McLaughlin, a 21-page list of creditors was filed at the time of the bankruptcy. Creditors included Beach Community Bank, the Okaloosa County School District, Mattie Kelly’s Arts Foundation and the city of Fort Walton Beach. The Y’s largest debt would be to Beach Community Bank which, with six other banks, loaned the YMCA group millions of dollars in 2007 to construct the building and pools at the Destin facility. Some sizable donation pledges to help support the Destin YMCA never came to fruition, resulting in the YMCA being besieged with debt. Last month, the article reports, “Beach Community Bank renewed its dormant 2011 civil case against the YMCA seeking foreclosure and the money the bank and its partners are owed. The banks had agreed three years ago to hold off foreclosing on the Y while efforts were made to save it”. The Y’s attorney stated in the news story, “’All assets now belong to the bankruptcy court…There is a chance the good and faithful Y partners will get partial refunds. It will take a little while. After all assets are administered … the properties will revert back, in our opinion, to the landlords.’” That should result in the Fort Walton Beach YMCA taking ownership of that building and the Mattie Kelly Arts Foundation taking control of the Destin facility. The Crestview YMCA is supported by a donation but that facility pays a mortgage to the Small Business Administration. The attorneys at Client First Bankruptcy have represented thousands of clients in their bankruptcy filings. If you are contemplating filing for a Chapter 7 or Chapter 13 personal bankruptcy due to piles of unpaid medical bills or other overwhelming debt, do not proceed without an experienced and knowledgeable bankruptcy attorney from Client First Bankruptcy at your side. For your free initial consultation, please call us toll-free at 800-383-6004; we answer our phone 8:30 a.m.-6:00 p.m. Central Time for your convenience. And please log onto www.clientfirstbankruptcy.com for important information about your personal bankruptcy anytime.