Iowa Developer Guilty of Bank Fraud Files Chapter 7 Bankruptcy

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Iowa developer John Kline, who is serving a prison term after pleading guilty to bank fraud involving development deals with business partner Randal Walters, has recently filed for Chapter 7 bankruptcy in U.S. Bankruptcy Court for the Southern District of Iowa in Des Moines. The bankruptcy filing shows that Kline has $15 million in debts and only $86,000 in assets. From an article by Kent Darr for the Business Record, Kline had been sentenced to a 30-month prison term last April “after admitting that bank loans intended for housing developments in West Des Moines and Des Moines were used instead to prop up other aspects of his business”. Kline, who is earning $25/month as an electrician’s assistant in a satellite camp of the U.S. Penitentiary in Leavenworth, Kansas, was ordered to pay $1.2 in restitution. At his current payment of $100/month, Kline will fulfill his obligation in one thousand years. This marks the second occurrence of Kline filing for bankruptcy protection. He filed for bankruptcy in February 2009, but the financial information filed was for his wife, Michelle, instead. A federal bankruptcy judge tossed that bankruptcy case out of court. The news report continued, saying that this bankruptcy filing occurred after what was determined to be an arson fire had destroyed the couple’s million-dollar home. No charges have been filed in that case. Randall Walters was sentenced to 12 months plus one day for his role in the business fraud with John Kline. Walters, who had also sought protection from creditors in bankruptcy court, had his case tossed out by the presiding judge, as well. Bankruptcy fraud is a federal crime.  The attorneys at Client First Bankruptcy take their obligation seriously.  Our attorneys approach each case with care and precision and we request relevant documentation to be able to protect its clients from allegations like these.  Don’t go to less experienced or less careful attorneys who try to sell you on ‘fast relief’ or ‘speedy filings’.  Haste often leads to bigger problems than those that caused the client to seek representation in the first place. The Client First Bankruptcy attorneys are among the most knowledgeable consumer bankruptcy attorneys in the country, representing thousands of clients in consumer bankruptcy cases. Call us toll-free at 800-383-6004 Monday thru Friday from 8:30 a.m.-6:00 p.m. Central Time. You can also log onto our easy-to-navigate, interactive website at www.clientfirstbankruptcy.com 24/7 for timely and accurate information on filing your Chapter 7 or Chapter 13 bankruptcy.

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School Daze; Families Dazed by Chapter 7 Bankruptcy

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Wisconsin International School, a private International Baccalaureate Primary Years world school that educated some 800 students, has filed Chapter 7 bankruptcy in the federal Bankruptcy Court for the Eastern District of Wisconsin in Milwaukee. Some families are out nearly $30,000 in prepaid tuition payments. The Chapter 7 bankruptcy filing shows the institution has estimated assets of up to $50,000 and estimated liabilities of about $550,000, including about $166,176 in wages and salaries, and another $383,438 owed to creditors. According to an article in the Green Bay Press Gazette by Patti Zarling, the former school director, Mary Vanden Busch, is owed $15,346 in wages. Todd Thiel, the former school board president who co-signed the letter announcing the school’s closure in June, is owed about $17,350 in tuition, according to bankruptcy documents. The school also owes money to BMO Harris Bank for a line of credit, the city of De Pere Water Department and Wisconsin Public Service. The school stated that it could not balance its books due to declining enrollment and fundraising shortfalls. “Projected enrollment for the new school year started off strong in early spring, but by June showed a drop of 30 percent — from 171 students in 2013-14 to 120 for 2014-15, board members said in the notice. Fundraising efforts for 2013-14 also fell 30 percent short of budget…” 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.

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