Executive's Bankruptcy Filing Put an End to a Home Raid
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Bankruptcy filing abruptly ends home raid


February 04, 2011

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Bankruptcy filing abruptly ends home raid

The U.S. Marshals Service raided the home of two Tennessee executives to seize property in order to satisfy a court claim, but had to abruptly stop the procedure after discovering that one executive had filed for personal bankruptcy.

Brian and Marsha Whitfield were executives in the Sommet Group, which provided payroll and health insurance services to small businesses, the Tennessean reports. The company was accused of theft and embezzlement, and was reportedly forced by creditors into bankruptcy. One month ago, a bankruptcy judge ordered the Whitfields and their affiliated companies to pay $6.9 million to creditors, and the most recent raid was an attempt to collect property in order to satisfy this claim.

The news source reports that the marshals were already in the process of cataloguing the couple's personal property and preparing to load it into vans parked outside the couple's home when they learned of Marsha Whitfield's personal bankruptcy. They had to return all property to the home.

When a consumer files for bankruptcy, an automatic stay immediately goes into effect , which blocks all creditors from taking collection action against the borrower.

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