By Mike Stetzer
Arek Fressadi, an independent contractor in the construction industry, recently filed for Chapter 11 personal bankruptcy.
On his bankruptcy petition, he claims $317,416 in assets and $1.2 million in liabilities, according to the Sonoran News. More than half of his debt is held by unsecured creditors. The construction contractor claims $1,600 in income from his job, though records reportedly show that he has not had a valid license with the Arizona Registrar of Contractors since 2008.
He also claims he collects a monthly income of $1,250 from renting out a property. It is reportedly unclear whether this income comes from a property he owns on School House Road, which was subject to a foreclosure action 10 days prior to Fressadi's bankruptcy filing.
M&I Bank, which filed the foreclosure action, will reportedly seek relief from any automatic stay generated by the debtor's bankruptcy prior to finalizing the foreclosure.
Though Chapter 11 bankruptcy is typically used by companies seeking to restructure their debt, consumers can file under this chapter in certain circumstances.