By Chris Kramer
Creditor suspicions have prompted a bankruptcy court to assign a trustee to Myrtle Beach, South Carolina lawyer Harry Pavilack's personal bankruptcy case.
According to TheSunNews.com, Pavilack was suspected of moving assets to friends and relatives, and allegedly failed to initially disclose more than $1 million in cash that he was hoarding in his office closet.
Pavilack had filed for Chapter 11 bankruptcy, reportedly claiming debts of more than $70 million. According to the news source, the bankruptcy filing does not affect Pavilack's businesses, but the value of his businesses are viewed as assets in his personal bankruptcy filing.
Trustees are reportedly only appointed in Chapter 11 cases when fraud or gross misconduct is suspected. Most Chapter 11 filers are businesses, whereas consumers typically file Chapter 7 or Chapter 13 bankruptcy. However, individuals can file for personal bankruptcy under Chapter 11 of the bankruptcy code under certain conditions. Chapter 11 of the bankruptcy code allows consumer or business debtors to reorganize their debts.
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