By Chris Kramer
George Thakor, who owns a Best Western and a Red Carpet Inn in Orange, Virginia, has reportedly managed to block the foreclosure of these properties by threatening to file for bankruptcy.
Thakor, who owes the town more than $33,000 in taxes and water and sewer fees, had admitted that he stopped making payments on his loan with Virginia Community Bank because he hasn't been able to secure the financing to finish work on the Best Western, according to the Free Lance-Star.
A foreclosure of the Best Western and the Red Carpet Inn, which had been used as collateral on the original loan, had been scheduled, but Thakor reportedly threatened to file for bankruptcy and thereby stop the auction. In response, the lender called it off. According to Paul "Chip" S. Bliley Jr., who was hired as a substitute trustee for the foreclosure proceedings, the bank is currently trying to work out terms with Thakor and no new auction has been scheduled.
When a consumer files for bankruptcy, an automatic stay immediately takes effect, which stops all collection activity by creditors during the bankruptcy process.