By: Meaghan Olson
February 01, 2011
Real estate developer John Kieffer recently filed for Chapter 7 bankruptcy, citing the housing crisis as a major contributing factor to his decision.
Kieffer, who is the chairman of the Cumming-Forsyth County Chamber of Commerce's board, launched a design and construction firm in 1996, according to the Forsyth News. Until 2007, he enjoyed business building custom homes and taking on other construction projects, but the housing crisis and the drop in property values has caused his business to suffer financially, and has kept several of his tentative development projects from launching.
"Real estate values have dropped 50 to 60 percent. I don’t see them being able to sell the land today for what we expected. So if we pay the loans, that will be a goal, that will be great," Kieffer said. His Chapter 7 bankruptcy filing listed $18.7 million in liabilities owed to a variety of creditors, the news provider reports.
Personal bankruptcies have increased by 93 percent in Georgia since 2006, according to the Atlanta Journal-Constitution.