DC's bankrupt mayor..

[lurker]

Dodge mayor files for bankruptcy

By Tim Vandenack

The Hutchinson News

tvandenackAThutchnews.com

DODGE CITY - Terry Lee, the mayor of Dodge City, has filed for Chapter 7 bankruptcy protection, listing nearly $73,000 in unsecured debt to creditors.

Lee filed in U.S. Bankruptcy Court in Wichita on Oct. 15 and met last week with creditors, according to court papers. But the process still is in motion, and creditors have until Jan. 9 to object, though such filings are usually fairly quick.

"I'm just a typical, middle-class, average person, and I struggle like everybody else does," said Lee, who was elected to the commission in 2004 and later was elevated to the mayor's post by his fellow commissioners.

He didn't delve into the circumstances of the filing but said he tried long and hard to rectify the situation.

"This isn't anything I took lightly," said Lee, a middle school teacher. "I have struggled with this a long time trying to avoid it. There just comes a time when you can't any longer."

At the same time, he said it wouldn't impact his work on the commission.

"It's not going to affect my job in the least bit," he said.

Chapter 7 filings allow debtors to liquidate unsecured debt, that is, debt that isn't backed by collateral, such as credit card obligations, medical bills and personal loans.

The mechanism gives debtors "a clean slate; you walk away from debt," said Todd Mark, spokesman for Consumer Credit Counseling Services of Greater Atlanta in Atlanta.

According to his filing, Lee has $72,956.01 in unsecured debt to seven creditors and an "unknown" amount to four more. The 11 include Apex Financial Management in Northbrook, Ill.; Citi Bank of Sioux Falls, S.D.; Chase of Wilmington, Del.; and AT&T Universal Card, also of Sioux Falls.

He listed $169,396 in assets - including his home, auto and KPERS pension - but claimed most of that as exempt, meaning it couldn't be used to pay off his debt, as per Chapter 7 rules. Otherwise, Lee lists only $10.45 in nonexempt assets.

Lee's Oct. 15 filing came only two days before most of the provisions of the Bankruptcy Abuse Prevention and Consumer Protection Act, signed by President Bush last April, went into effect.

"I put it off a long time," said Lee. "I told myself I would make it."

Under the new provisions, Chapter 7 filers are restricted, generally, to people who make less than the median income in their home state for their household size. Instead, people who might have otherwise filed for Chapter 7 might have to file for Chapter 13 bankruptcy, which requires debtors to pay a portion of their debt.

Through it all, Lee says he has a new appreciation for people fighting to make ends meet.

"I used to put people that filed bankruptcy into a stereotype, like I think we all probably do," he said. "Having went through it, I can honestly say I don't hold that stereotype anymore. I know that circumstances can happen to people that are beyond their control."

So whadda ya think?

[Highwayman]

Through it all, Lee says he has a new appreciation for people fighting to make ends meet.

And maybe a new appreciation for the tax burden on folks struggling to make ends meet?

[K C Muffin]

I think his comments were honest and straight-forward. All kinds of things happen that are beyond our control. If it comes at a time when serious credit card debt or medical bills or almost any kind of bill has accumulated, it can destroy a person's life if they let it. I think that by his example, more people will come to accept the fact that bankruptcy doesn't automatically mean you're not trustworthy with money, although that's certainly the case sometimes. It just means things got out of control. I think what Congress was trying to change was the reasons it got out of control and try to stem the tide of multiple bankruptcy filings.

I don't know about your mayor, but the only bankruptcy filers that I can't respect are the ones that know the filing is impending and purposely make purchases they couldn't otherwise afford. But since the slate is going to be wiped clean (under the old law), why not run up the tab a bit. From what I know of the new law, a person will be required to pay back a portion of specific debts, but I haven't really studied it yet.

[TexKan]

I feel sorry for him - don't know him but heck now maybe he can buy a new car and a new house like everyone else.........I never made enogh to file bankruptcy..........had to leave the state and change my name....still payin for the plastic surgery bill...............

[K C Muffin]

Originally Posted by Highwayman

And maybe a new appreciation for the tax burden on folks struggling to make ends meet?

I honestly hope so, Hiway - although tax debt, whether local, state or federal, can not be erased or reduced in bankruptcy court. Sometimes, it's the added burden of taxes that forces citizens to file. They can't pay the tax and the debt. One way to pay the debt ...................

You know. It's a vicious, evil cycle.

[Lone Gunman]

Originally Posted by TexKan

I feel sorry for him - don't know him but heck now maybe he can buy a new car and a new house like everyone else.

He's all ready driving a new car. Clasic example of trying to live above your means.

[TexKan]

Isn't that how it always works....... ya ever notice those that DO file, seem to gather up all the marbles BEFORE they leave the game.......???? Aint America GREAT?????

[lurker]

It appears like he was well coached:

He listed $169,396 in assets - including his home, auto and KPERS pension - but claimed most of that as exempt, meaning it couldn't be used to pay off his debt, as per Chapter 7 rules. Otherwise, Lee lists only $10.45 in nonexempt assets.

I guess $10.45 is all he has to offer towards paying nearly $73,000.00 in unsecured debt.

[Lone Gunman]

Pretty fancy bookeeping. He got it right down to the gnats ass.

[TexKan]

I was wonderin - is that 10 DOLLARS or 10,4500....... Heck $10 won't even get him outta Peppercorns........... My bet is you won't see his lifestyle change a lot. - things are just gonna get better....... not a bad road to travel if ya can........
BTW - DC......... ya'll need to jack the salary up for your mayor...... he's STARVIN to death...........