Category Archives: Bankruptcy

The COVID-19 pandemic along with the expiration of the eviction moratorium is expected to fuel a rise in bankruptcy filings at the beginning of 2022, according to an Indianapolis-based lawyer.

After the eviction moratorium ended over the summer the Consumer Financial Protection Bureau put new rules into place to curb foreclosure.

What the mortgage company cannot do under the new rules is they cannot foreclose unless the borrower has been behind for over 120 days, said Indianapolis bankruptcy attorney Mark Zuckerberg.

But unless those rules are extended beyond the new year, Zuckerberg said he is expecting a flood of bankruptcy cases not seen since the housing crisis a decade ago.

People generally file for Chapter 7 or 13 after suffering a significant event that hurts their finances.

It's either divorce, loss of job, medical bills for death of a family member, and they just can't handle the burden of debt that they're under, he said.

A person qualifying for Chapter 13 will be required to pay back what they owe over a three-to-five-year period.

The bankruptcy code sets forth how the money is going to be passed out. It's called the priority system, said Zuckerberg.

Chapter 7 releases the debtor from paying unsecured debts, such as credit card and medical bills, but you may be required to relinquish some luxury items.

If you owe $100,000 on a house and you haven't paid on it for two years, because of COVID. You can't file bankruptcy and keep your house, he said.

If you file for Chapter 7 bankruptcy, it will stay on your credit report for 10 years; Chapter 13 will remain on your credit report for seven years.

Originally posted here:

Bankruptcy lawyers expect filings to increase in 2022 - WFYI

DebtorName

DBA/FDBAOther namesused

BusinessType

BankruptcyCourt

Assets

Liabilities

FilingDate

Aguila, Inc.(New York,NY)

CommunityFood andHousing, andEmergencyandOther ReliefServices

ManhattanNY

$1,000,001to$10,000,000

$1,000,001to$10,000,000

10/15/21

Teligent,Inc.(1)(Iselin, NJ)

IGI Laboratories,Inc

Pharmaceuticaland MedicineManufacturing

WilmingtonDE

$50,000,001to$100,000,000

$100,000,001to$500,000,000

10/14/21

Igen, Inc.(Iselin, NJ)

Pharmaceuticaland MedicineManufacturing

WilmingtonDE

$50,000,001to$100,000,000

$100,000,001to$500,000,000

10/14/21

TeligentPharma,Inc.(2)(Iselin, NJ)

IGI Labs, Inc.,Immunogenetics,Inc.

Pharmaceuticaland MedicineManufacturing

WilmingtonDE

$50,000,001to$100,000,000

$100,000,001to$500,000,000

10/14/21

TELIP LLC(Iselin, NJ)

Pharmaceuticaland MedicineManufacturing

WilmingtonDE

$50,000,001to$100,000,000

$100,000,001to$500,000,000

10/14/21

Gulf CoastHealth Care,LLC(Pensacola, FL)

Nursing CareFacilities(SkilledNursingFacilities)

WilmingtonDE

$10,000,001to$50,000,000

$100,000,001to$500,000,000

10/14/21

GCHManagementServices, LLC(Pensacola,FL)

Nursing CareFacilities(SkilledNursingFacilities)

WilmingtonDE

$10,000,001to$50,000,000

$100,000,001to$500,000,000

10/14/21

HUDFacilities, LLC(Pensacola,FL)

Nursing CareFacilities(SkilledNursingFacilities)

WilmingtonDE

$10,000,001to$50,000,000

$100,000,001to$500,000,000

10/14/21

Gulf CoastFacilities, LLC(Pensacola,FL)

Nursing CareFacilities(SkilledNursingFacilities)

WilmingtonDE

$10,000,001to$50,000,000

$100,000,001to$500,000,000

10/14/21

FloridaFacilities, LLC(Pensacola,FL)

Nursing CareFacilities(SkilledNursingFacilities)

WilmingtonDE

$10,000,001to$50,000,000

$100,000,001to$500,000,000

10/14/21

PensacolaAdministrativeHoldings, LLC(Pensacola,FL)

Nursing CareFacilities(SkilledNursingFacilities)

WilmingtonDE

$10,000,001to$50,000,000

$100,000,001to$500,000,000

10/14/21

PensacolaAdministrativeServices, LLC(Pensacola,FL)

Nursing CareFacilities(SkilledNursingFacilities)

WilmingtonDE

$10,000,001to$50,000,000

$100,000,001to$500,000,000

10/14/21

Gulf CoastMaster TenantHoldings, LLC(Pensacola,FL)

Nursing CareFacilities(SkilledNursingFacilities)

WilmingtonDE

$10,000,001to$50,000,000

$100,000,001to$500,000,000

10/14/21

Gulf CoastMaster Tenant,LLC(Pensacola,FL)

Read the original post:

Bankruptcy Updates for Week of October 17th - The National Law Review

The company is looking to resolve the cases in bankruptcy court.

October 20, 2021, 1:46 PM

3 min read

Citing what it calls an unrelenting assault by greedy lawyers, Johnson & Johnson is hoping to use the bankruptcy process to dispose of 40,000 lawsuits that claim its baby powder products caused cancer.

A J&J subsidiary created to hold the liabilities from the litigation announced last week it was filing for chapter 11 protection.

During Wednesdays hearing, the first in the case, the judge is expected to hear from J&J why bankruptcy is the best method to resolve the lawsuits and from critics who called the move an unconscionable abuse of the legal system.

There are countless Americans suffering from cancer, or mourning the death of a loved one, because of the toxic baby powder that Johnson & Johnson put on the market that has made it one of the most profitable pharmaceutical corporations in the world. Their conduct and now bankruptcy gimmick is as despicable as it is brazen, Linda Lipsen, of the American Association for Justice, an advocacy group pushing for change in bankruptcy laws, said in a statement.

The company has denied its signature Johnsons Baby Powder and other talc-based products contained asbestos and caused cancer, as alleged by tens of thousands of plaintiffs. J&J has spent nearly $1 billion defending itself, according to a court filing.

Debtor continues to stand behind the safety of its cosmetic talc and does not believe the claims have merit, J&J said in a court filing. The unfortunate reality is that this filing is necessitated by an unrelenting assault by the plaintiff trial bar, premised on the false allegations that the Debtor's 100+ year old talc products contain asbestos and cause cancer.

The company stopped selling Baby Powder in the United States and Canada in May 2020.

Johnson's Baby Powder has been a staple for hundreds of millions of people for over 125 years. If claimants' allegations were correct that the product causes disease, there should have been long ago an epidemic clearly attributed to the use of the product. That is not the case, the filing said.

Johnson & Johnson has put $2 billion into a settlement fund to pay the talc claims even though the company said $2 billion is substantially in excess of any liability the Debtor should have.

The rest is here:

Johnson & Johnson looking to bankruptcy to resolve 40,000 baby powder cancer suits - ABC News

FORT WAYNE, Ind. (WANE) A city of Fort Wayne spokesperson said Monday the city was still studying the bankruptcy filing of its trash and recycling contractor, Red River Waste Solutions.

Texas-based Red River filed for Chapter 11 bankruptcy on Thursday. In the filing, the family-owned business, which services 310,000 households across 5 states including Fort Wayne, blamed the COVID-19 pandemic, a credit agreement and operational challenges for its financial struggles.

Red River said in the filing it hoped to reorganize its business through bankruptcy.

What will that mean for Fort Wayne residents, though?

John Perlich, a spokesman for Mayor Tom Henrys office, told WANE 15 there will be an update at Tuesdays City Council meeting. He didnt specify what exactly the update will be, but added: details are being worked out now.

Perlich said in the meantime, garbage and recycling materials continue to be collected.

This was a shock, said Councilman Geoff Paddock (5th District) of Red Rivers bankruptcy filing. Obviously its a disappointment to see their business failing but, I will say one thing in the short term in the last three days since the announcement was made, Red River has been out and they have been picking up trash in the district neighborhoods that I represent.

In 2017, Red River secured a seven-year collection and hauling contract with the city of Fort Wayne. The service has been problematic for many residents from the outset, with regular missed collections that led to fines levied against the contractor.

Paddock said he wasnt sure if the company filing for bankruptcy would void the citys contract with Red River. That would have to be looked into by the citys legal department, he said.

Even considering that extensive history of complaints from customers, Paddock said hiring a new company wouldnt necessarily mean the problem will go away.

Court documents filed by the company said its revenue dropped by $1 million between March 2020 and February 2021. The three primary factors that have transformed Red Rivers relatively stable operation: the COVID-19 pandemic, a credit agreement executed on or around April 1, 2020, and operational challenges.

According to the filing, since the pandemic has confined people to their homes, their levels of residential waste have increased dramatically.

This increase in waste volumes required the Debtor to respond by hiring more workers to collect that waste, said court documents. This was an added challenge because many workers, including Red Rivers employees, were more inclined to stay at home in response to the pandemic.

The company said in addition to struggling to find workers to help pick up the extra trash, the increase in waste volumes has also taken a toll on its vehicles and equipment. These service and equipment problems resulted in substantial fines.

In total, responding to issues created by the pandemic has cost Red River approximately $1.3 million, according to the filing.

Court documents say in April 2020, Red River entered into a $35 million loan. Due to the significant debt service required under the loan obligation, the company was forced to significantly reduce or eliminated the funds it otherwise budgets for the maintenance and repairs required to preserve its vehicle fleet and other equipment.

Since April 2020, the company has built up a deferred maintenance obligation of about $2.6 million, according to the filing. Approximately $1 million of that relates to repairs necessary to comply with safety inspection requirements.

To reorganize its business, the filing says Red River believes it has three reasonable options: a stand-alone restructuring of its business, a reorganization that includes engaging third-party exit financing or selling its business in two parts based on prepetition marketing.

WANE 15 has efforted multiple attempts to obtain a statement from Red River but has not had any luck.

Tuesdays City Council meeting starts at 5:30 p.m.

Read more here:

Fort Wayne officials looking into Red River bankruptcy - WANE

TAMPA, Fla. (WFLA) New filings in the personal bankruptcy case involving the owner ofOlympus Pools, James Staten, and his wife, say Olympus owns a 5% stake in Staycation Pools and Spas, another pool business owned by Statens one-time business partner, Jordan Hidalgo.

Olympus Poolsshutteredin July after a series of investigative reports byBetter Call Behnken.

The new filing, which details claims against the Statens as well as their assets, says Olympus Pools has a 5% Interest in Staycations Pools and Spas valued at approximately $500,000.

Better Call Behnken reached Hidalgo by phone for comment. Hidalgo confirmed he and Staten had signed an agreement for Staten to have a 5% stake in Staycation, but contends the agreement is no longer valid.

According to their court filing, the Statens claim Staycation Pools and Spas is estimated to have a valuation of $10 million.

I would sell my company today for a tenth of that stated value, Hidalgo told Better Call Behnken in a brief phone interview.

The filing shows the Statens owe creditors a total of $5,875,689.31. The couple has a combined monthly income of $7,811, but their monthly expenses total $11,997.03, court records state. A court approved monthly budget allows them to spend $10,874 on expenses.

The document also states their real estate holdings, including their personal home and the office building for Olympus, are valued at $5,525,000. Their personal property is worth $229,993, bringing the total of all their properties to $5,754,933.

The Statens filed for Chapter 11 personal bankruptcy on Oct. 6. The next hearing in their bankruptcy case is currently scheduled for Tues., Oct. 26.

Read the original post:

Olympus Pools owner claims his company owns stake in former business partners company - WFLA

The 2021 water year ended on Sept. 30, and it was another hot, dry year in the western U.S., with almost the entire region in drought. Reservoirs vital for farms, communities and hydropower have fallen to dangerous lows.

The biggest blow came in August, when the U.S. government issued its first ever water shortage declaration for the Colorado River, triggering water use restrictions.

In response, farmers and cities across the Southwest are now finding new, often unsustainable ways to meet their future water needs. Las Vegas opened a lower-elevation tunnel to Lake Mead, a Colorado River reservoir where water levels reached unprecedented lows at 35% of capacity. Farmers are ratcheting up groundwater pumping. Officials in Arizona, which will lose nearly one-fifth of its river water allotment under the new restrictions, even floated the idea of piping water hundreds of miles from the Mississippi River.

These strategies conceal a more fundamental problem: the unchecked growth of water consumption. The Southwest is in an anthropogenic drought created by the combination of natural water variability, climate change and human activities that continuously widen the water supply-demand gap.

In the long run, this can lead to water bankruptcy, meaning water demand invariably exceeds the supply. Trying to manage this by cranking up water supply is destined to fail.

More than 7,000 miles away, Iran is grappling with water problems that are similar to the U.S. Southwests but more severe. One of the driest years in the past five decades, on the back of several decades of mismanaged water resources, brought warnings of water conflicts between Iranian provinces this year.

As environmental engineers and scientists one of us is also a former deputy head of Irans Department of Environment weve closely studied the water challenges in both drought-prone regions. We believe past mistakes in the U.S. and Iran offer important lessons for future plans in the U.S. Southwest and other regions increasingly experiencing drought and water shortages.

As the supply of water from the Colorado River diminishes, Southwest farmers are putting more straws into already declining groundwater that accumulated over thousands to millions of years. But that is a short-term, unsustainable solution that has been tried across the U.S. and around the globe with major consequences. The High Plains Aquifer and Californias Central Valley are just two examples.

Iran offers a case study in what can go wrong with that approach, as our research shows. The country nearly doubled its groundwater extraction points between 2002 and 2015 in an attempt to support a growing agricultural industry, which drained aquifers to depletion. As its water tables drastically declined, the groundwaters salinity increased in aquifers to levels that may no longer be readily suitable for agriculture.

As water-filled pores in the soil are drained, the weight of the overlying ground compresses them, causing the aquifers to lose their water holding capacity and accelerating land subsidence. Irans capital, Tehran, with more than 13 million residents, subsided more than 12 feet between 2003 and 2017. Similarly, some areas of California are sinking at a rate of up to 1 foot each year.

Another proposal in the Southwest has been to pipe in water from elsewhere. In May, the Arizona legislature urged Congress to initiate a feasibility study to bring Mississippi River water to replenish the Colorado River. But that, too, has been tried.

In Iran, multiple interbasin water transfer projects doubled the flow of the Zayandeh Rud, a river in the arid central part of the country. The inflow of water supported unsustainable growth, creating demand without enough water to support it. In dry years now, no one has enough water. Many people in Khuzestan the region supplying water to central Iran lost their livelihood as their farms dried out, wetlands vanished, and livestock died of thirst. People in central Iran also lost crops to the drought as incoming water was cut. Both regions saw protests turn violent this year.

California diverted water from the Eastern Sierra Nevada to support Los Angeles growth in the early 1900s, turning the once prosperous Owens Lake Valley into a dust bowl. Costs of mitigating dust storms there now exceed $2 billion. Meanwhile, California needs more infrastructure and investment to meet its water demand.

Another project, the California Aqueduct, was constructed in the 1960s to transfer water from the Sacramento-San Joaquin Delta in Northern California to the Central Valley and southern parts of the state to support agriculture and some urban demand. This also did not close the water demand-supply gap, and it pushed economically and culturally important native fish species and ecological systems in the delta to the point of collapse.

As the continued influx of population into the U.S. Southwest raises water demand in the face of shrinking water supply, we have to wonder whether the Southwest is heading toward water bankruptcy.

While there is no easy solution, a number of actions are possible.

First, recognize that water shortages cannot be mitigated only by increasing water supply its also important to manage water demand.

Cities can save water by curbing outdoor water losses and excess water use, such as on ornamental lawns. Californians successfully reduced their water demand by more than 20% between 2015 and 2017 in response to severe drought conditions. Replanting urban landscapes with native drought-tolerant vegetation can help conserve water.There is great potential for water savings through efficient irrigation and precision agriculture systems, which could keep agriculture viable in the region.

On the supply side, communities can consider nontraditional water sources, water recycling and reuse in all sectors of the economy, and routing runoff and floodwaters to recharge groundwater aquifers.

There are also emerging technological solutions that could boost water resources in some regions, including fog water collection, which uses sheets of mesh to capture moisture from fog, and desalination plants that turn seawater and saline groundwater into drinking water. One new desalination plant planned for Huntington Beach, California, is awaiting final approval. Environmental consequences of these measures, however, should be carefully considered.

The Southwest monsoon returned this summer after a record dry previous year and a half in the region, but it wasnt enough to end the drought there. Forecasts now suggest a high chance that a La Nia pattern will develop over the winter, meaning Southwest is likely in for another drier-than-normal start to 2022.

Iran is already in water bankruptcy, with demand exceeding supply. It will take a lot more than a wet year to alleviate its water shortages.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Read more here:

Avoiding water bankruptcy in the Southwest: What the US and Iran can learn from each other - Nevada Current

SOLOMONS ISLAND, Md. Two Calvert County seafood staples were recently planned to go up for auction, but court filings have changed the plans.

Stoneys Kingfishers Seafood Bar & Grill in Solomon Island and a sister location in Broomes Island, Stoneys Seafood House, were originally set to go to auction on October 19. However, a recent bankruptcy filing has forced a cancellation of the sale.

"We need to await the outcome in the Bankruptcy Court before we know if the properties will return to the auction block," Paul Cooper, vice president of Alex Cooper Auctioneers toldTheBayNet.com.

The two originally planned auctions included real estate only according to Cooper, as noted by the Baltimore Business Journal.

Stoneys Kingfishers is roughly 4,800-square-feet and rests atop a 0.25-acre waterfront lot on the Patuxent River. Additionally, the restaurant has panoramic views and several boat slips. The property owners currently lease out the restaurant.

Currently, the Broomes Island location is temporarily closed, but it still has some pleasant features. The restaurant is roughly 6,200-square-feet and features a 300-seat restaurant that has been serving the community for over 20 years. The property also shares 1.34 acres of waterfront property with an adjacent bed-and-breakfast. There is also a 5,000 square-foot wedding venue next door.

The auction was supposed to take place at the Circuit Court for Calvert County. We will continue to provide additional details when they come available.

Contact our news desk at news@thebaynet.com

More:

Stoney's In Solomons And Broomes Island Head To Bankruptcy Court; Could See Auction - Bay Net

(Bloomberg) -- Hertz Global Holdings Inc., the car rental company that exited bankruptcy in June and has been trading over the counter, is planning to list its shares on Nasdaq.

Most Read from Bloomberg

The company in a filing Friday listed the size of the offering as $100 million, a placeholder that will likely change. Some of its shareholders, who arent identified in the filing with the U.S. Securities and Exchange Commission, plan to sell shares as part of the offering.

Hit hard by the coronavirus pandemic, the company filed for Chapter 11 and emerged after Knighthead Capital Management, Certares Opportunities and Apollo Capital Management bought the business in a $6 billion deal. The group owns 42% of Hertz, the filing shows.

Hertzs shares, which have been trading on the Over-the-Counter Bulletin Board as HTZZ, had become a favorite of investors chatting on Reddit message boards.

The company, based in Estero, Florida, reported $21 million in net income on a revenue of $3.2 billion during the first half of the year. That compared with a $1.2 billion net loss on $2.8 billion in revenue for the same period a year ago.

Last week, Hertz announced that Mark Fields, a former Ford Motor Co. chief executive officer, was taking over as interim CEO. Fields had joined Hertzs board in June.

Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley are advising the listing. Hertz plans for its shares to trade on the Nasdaq Global Select Market under the symbol HTZ.

Most Read from Bloomberg Businessweek

2021 Bloomberg L.P.

Read the original here:

Hertz Files to List Shares on Nasdaq in Wake of Bankruptcy Exit - Yahoo Finance

The Boy Scouts bankruptcy case crossed an important milestone on Sept. 29, 2021, when Judge Laura Selber Silverstein approved the Boy Scouts statement that explains its plan to exit bankruptcy. That statement includes a proposal for compensating the tens of thousands of people who filed claims attesting that they were sexually abused while participating in the Boy Scouts programs. Survivors now get a chance to vote on the Boy Scouts exit plan. But for the Boy Scouts to exit bankruptcy and continue operating, the judge must sign off on it.

The Boy Scouts filed bankruptcy in February 2020 in the wake of lawsuits publicly exposing the decades-long sexual abuse of Scouts, with the intent to use bankruptcy to set up a fund to compensate survivors. The Boy Scouts plan to exit bankruptcy includes settlements with insurance companies, the Church of Jesus Christ of Latter-day Saints, which previously funded scouting activities, the Boy Scouts and its local councils. These settlement deals total almost US$1.9 billion.

The roughly 250 local councils will contribute $500 million, and the national umbrella organization, the Boy Scouts, will put in up to $320 million. Insurers and the Church of Jesus Christ of Latter-day Saints will collectively contribute a bit under $1.1 million. If the plan is approved, the settlement will prohibit further lawsuits against the Boy Scouts and its local councils.

For the judge to approve the Boy Scouts plan, a majority of the nearly 82,000 survivors who filed claims in the bankruptcy case and businesses owed money by the Boy Scouts that is, its creditors must vote in favor of it. The survivors will receive ballots and informational packets by mid-October. Survivors must return the ballots by Dec. 15, 2021. The votes will be tallied by Jan. 4, 2022. The judge has scheduled a hearing on Jan. 24, 2022, to consider the results of the voting and whether to approve the Boy Scouts bankruptcy exit plan.

Abuse claimants face a tough decision. Throughout the bankruptcy case, survivors and their attorneys have called out the Boy Scouts for neglecting to protect children for decades and instead shielding abusers. The committee that represents abuse survivors as a whole in the bankruptcy case has counseled survivors to reject the plan and has stated that the plan is grossly unfair. In contrast, attorneys separately representing tens of thousands of abuse claimants have encouraged survivors to vote in favor of the plan because they believe it is the best possible outcome.

In addition to voting in favor of or against the plan, the ballot that survivors will receive requires them to choose between two options for payment. They can get an expedited distribution payment of $3,500, with almost no questions asked. Or they can choose to go through an evaluation process of their abuse claim. If they choose the process, survivors will receive amounts based on the severity of the abuse they suffered and other criteria. Based on the criteria, a survivor could receive as little as $3,500 or as much as $2.7 million.

The Boy Scouts membership has plunged in recent years, decreasing by 43% from about 2 million in 2019 to 1.1 million in 2020. The decline is partly due to the publics growing awareness of the alleged widespread molestation of Scouts and the Boy Scouts decades-long cover-up of the abuse.

There likely are other causes, such as the COVID-19 pandemic, the Boy Scouts battles over the inclusion of LGBTQ individuals and the Church of Jesus Christ of Latter-day Saints decision in 2019 to pull its 400,000 members from the Boy Scouts to start its own youth program.

Every time there is news from the case, the Boy Scouts history of turning a blind eye to the abuse is put on display again. As the case continues, churches and other organizations that historically have hosted Boy Scout troops and events may think twice about continuing their relationships, especially if they worry about their own liability for the abuse suits.

Approval of the Boy Scouts plan and settlement will finally close this chapter of the Boy Scouts history. This may allow the Boy Scouts to focus on rebuilding its programs, maintaining relationships with churches and other organizations, and forging new relationships.

A possible outcome of the hearing scheduled in January 2022 is that the judge does not approve the plan. This might happen for several reasons. Not enough abuse survivors or other creditors may vote in favor of the plan. There also are a few elements of the settlement that the judge still must consider before signing off.

If the judge does not approve the plan, the Boy Scouts bankruptcy case will continue. The Boy Scouts will return to negotiations with insurers, abuse survivors and others to try to craft another settlement agreement and bankruptcy exit plan. This outcome could make the bankruptcy case drag on even longer.

Each survivors decision about how to vote is their own. Although survivors can seek guidance from their attorneys, the decision ultimately must be made by each of them. In bankruptcy, voting on the plan is the moment when everyone has a voice.

Abuse survivors finally have the chance to have their voice heard. They have the power to tell the Boy Scouts, through their vote, how they feel about how the Boy Scouts has responded to a deluge of abuse claims and the price tag that has been attached to their pain.

[Over 110,000 readers rely on The Conversations newsletter to understand the world. Sign up today.]

Read more:

Sexual abuse survivors are voting on the Boy Scouts bankruptcy settlement: 5 questions answered - The Conversation US

Editor's note: Denver7 seeks out audience tips and feedback to help people in need, resolve problems and hold the powerful accountable. If you know of a community need our call center could address, or have a story idea for our investigative team to pursue, please email us at contact7@thedenverchannel.com or call (720) 462-7777. Find more Contact Denver7 stories here.

DENVER A Colorado company that promised to help clients get out of their timeshare and offered a money-back guarantee has filed for Chapter 7 bankruptcy.

The Timeshare Termination Team filed for bankruptcy at the end of September, stating the business has about $10,000 in assets, including desks and office chairs. Bankruptcy documents filed with the court say the company has an estimated $25 million in liabilities, it also shows the company pulled in $2.2 million in gross revenue from Jan. 1 until the filing date.

A letter sent to former clients states, "No property appears to be available to pay creditors. Therefore, please do not file proof of claim now."

The owners of the company, Brian and Holly Wilbur, have also filed for Chapter 11 bankruptcy.

"Any hope of getting any funds from them, no matter how little they would be, was basically gone," said Rob Dines, a former client.

Dinges said he hired Timeshare Termination Team in January of this year in hopes of terminating his timeshare in Mexico's Playa del Carmen. He said the company even sweetened the deal by offering him a discount. He signed a contract and ended up paying $2,995, then he waited.

"I think it was in August, I decided, well, maybe I better check again, see whats going on," Dinges said. "All the phone numbers I had, when I called they were all disconnected, no longer in service. So then I went online and Googled them."

During his online search, he found stories from Contact Denver7 showing the business had closed its doors. He realized he wasn't the only one left wondering what happened to his money.

Contact Denver7 has received messages from about 30 viewers who say they also signed contracts with Timeshare Termination Team and paid the company thousands of dollars. The combined amount of money lost from all the people who reached out is more than $130,000.

"In this case, unfortunately, it doesnt look very good. Its doubtful there will be any significant return. If youre talking about hundreds of thousands of dollars for claims and maybe $10,000 worth of assets, if youre lucky, people will see 10 cents on the dollar. In this case, probably even less than that," said Jamie Buechler, a bankruptcy attorney who is not affiliated with this case.

Dinges said he is trying to dispute the charge with his credit card company but he's not expecting much. He is also still left wondering if Timeshare Termination Team was ever a legitimate business or if it was a scam from the beginning.

"It makes me frustrated knowing that a company like this whether theyre legit or not can just declare bankruptcy and walk away and leave everybody in the lurch," Dinges said.

There will be a meeting for creditors on Oct. 28 at 10 a.m. They can call in by dialing 888-395-7928 and entering the passcode 4268596.

More:

Timeshare Termination Team files for Chapter 7 bankruptcy; former clients out thousands - The Denver Channel