By: Chris Kramer
October 11, 2010
A Milwaukee-area developer recently filed for Chapter 7 bankruptcy, claiming liabilities of $50 million to $100 million with only $1 million to $10 million in assets.
According to the Milwaukee Journal-Sentinel, Robert Patch, who operates Heartland Development Group, ran into financial difficulties regarding condominium and office projects in Wisconsin.
Patch said that the collapse of the housing market forced him to file Chapter 7 bankruptcy, which sees the liquidation of the debtor's non-exempt assets to partially pay creditors, leaving the filer absolved of most unsecured debt.
"We felt the downturn in the real estate market in the fall of 2006. Condos have been hit especially hard," he said in a statement. "We went from selling 200 units per year to less than 20. No one could have predicted a four-year collapse of the market. This has been a very humbling experience for me and my family."
Patch's bankruptcy petition lists hundreds of creditor, including a large number of contractors connected to Heartland Development Group projects.
Patch and his developments have faced a number of multimillion foreclosure lawsuits over the past few months, reports the news source.