By: Gerri Elder
October 19, 2010
In what seems to be a running theme across the country, a home-building contractor recently filed for personal bankruptcy.
Randall Palazzo was a popular homebuilder in Oregon but had issues with the construction community, which alleged that he often did not pay his bills promptly, reports the Oregonian.
According to the filings at the Multnomah County Recorder's office, over the past few years a number of suppliers and subcontractors filed more than 1,000 construction liens against Palazzo's home-building company.
This was partially responsible for forcing Palazzo to file for Chapter 7 bankruptcy earlier this month.
Palazzo's bankruptcy attorney said that the collapse of the housing market greatly affected his client.
"The continued softness of the housing market and the overhang of the debt [his company assumed] from the overbuilding that occurred in 2006-2008" created challenges that Palazzo couldn't overcome, the bankruptcy lawyer told the news provider.
"You had to have some level of optimism to assume that he was going to be able to turn it around," he said. "He worked very hard to do that. He gave it a good shot and it didn't work."