By: Mary Ann Pekara
January 04, 2011
Wyoming state senator Austin Jennings has recently filed for Chapter 7 bankruptcy after he lost a legal contract dispute with one of his creditors.
Wyoming Machinery Company had sought $500,000 from Jennings as payment for equipment rentals, according to the Casper Star-Tribune. Jennings claimed that the company had breached its contract with him, as the equipment was not to his requested specifications. He lost a legal battle against the company, resulting in an obligation to pay the $500,000, which with interest totaled up to $1.5 million.
In reaction to this hefty judgment, Jennings filed for Chapter 7 bankruptcy, listing assets of $190,000 and liabilities of $1.9 million. In addition to the court-ordered judgment, Jennings also owes more than $116,000 in back income taxes to the Internal Revenue Service and has an outstanding debt with the creditor that holds the mortgage on his house, the news provider reports.