Here is a great news story that gives you a real look at some of the recent small business failures and what the court documents tell us. It helps to put a real face on what would otherwise be just another tick in a column.
Court documents offer a window into some of the struggles of these entrepreneurs. The following vignettes were gathered from paperwork filed in bankruptcy court this summer and fall. Owners of these businesses either declined to comment or could not be reached:
- Brad Echeverria started his Boise home-building company, Echeverria Construction Inc., in 1998. The company shut down in January 2008, and Echeverria has been working as a subcontractor for Steed Construction in Eagle since then. He and his wife filed for Chapter 7 bankruptcy protection on Aug. 28. They plan to surrender a $300,000 home on Diamond Ridge Way in Nampa to pay off Washington Mutual, which is owed $220,000 from a mortgage loan issued in 1997, and Wells Fargo, which is owed $66,000 from a second mortgage issued in 2004. Liabilities total $673,000, while the Echeverrias have assets of $313,000. Liabilities include a $28,000 business debt to Arenas Plaster of Eagle for masonry and stucco provided in 2006, $23,000 to Eagle Custom Wood Products of Emmett for cabinets and more than $100,000 owed on business credit cards.
- David Cullison operated his Boise construction and remodeling company, Cullison Construction, from June 1994 until July 2008. He and his wife owe $290,000 and have $111,000 in assets. Their real property assets include a 50 percent interest in a home in the Country Club Manor development near Hillcrest Country Club, though they owe $205,000 to Countrywide Home Loans for the property. Other debts include $25,000 in wages they owe themselves and $55,000 related to a breach of contract lawsuit.
- Kirk Carpenter of Boise has operated his own business for most of the time that he’s also served as a Nampa firefighter over the past 10 years. His company, Open Door Home Building, also known as Concore LLC or E4 Developments, has built homes since October 2000. For the past two years, Carpenter has also worked as a realtor for Idaho Properties GMAC. On Oct. 6, he and his wife filed for Chapter 7 bankruptcy protection with $149,400 in assets and $1.4 million in liabilities. Their $278,000 home on Riva Ridge in Boise was returned to the lender, HSBC Mortgage Services, on Sept. 3. They also lost possession of a home on Ardyce Street in Boise in January, when it was returned to Wells Fargo. Debts include $322,000 owed to Syringa Bank for construction loans issued in 2006; $150,000 to Darrell Wiseman, a private investor in Meridian; $225,000 to Kenny Lee, a private investor in Nampa; and $60,000 for a business loan from Wayne and Dru Carpenter of Baker City, Ore.
- Chambers Construction of Meridian reported gross income of $42.3 million in 2006, which plummeted to $2.4 million in 2007 and $283,000 this year. The company, led by president Gary Chambers, filed for Chapter 7 bankruptcy protection on Oct. 7 with $1.1 million in assets and $1.8 million in liabilities. The assets consist of four properties, including a $424,000 home on Commander Street in Meridian, plus two additional properties of unknown value. Liabilities include four construction loans totaling $680,000 from Banner Bank issued in May and June 2008, a $464,000 construction loan issued by Provident Financial in May 2008 and a $218,000 construction loan from Action Mortgage issued in May 2008. Other unsecured debts include $8,600 owed to subcontractor Metric Industries Inc. of Boise, $28,000 to supplier Evans Building Center of Eagle, $30,275 to subcontractor Prestige Fence and Lands of Star and $18,300 to supplier Dale’s Floor and Granite Inc. of Nampa.
- Scott Carroll closed his Post Falls painting company, Scotts Painting, in September after more than five years in business. He and his wife filed for bankruptcy on Oct. 17. The only major asset they possess is a $168,000 home, though they have $229,000 in liabilities. They plan to retain their home and pay CitiMortgage Inc. the $147,000 that’s still owed after the conclusion of the bankruptcy process. Most of the rest of their liabilities consist of medical bills, a car loan and credit card debt.
- Boise home builder and contractor Russ Iverson filed for Chapter 7 bankruptcy protection on Aug. 29. Iverson and his company, Outlook Homes, will surrender five properties in the liquidation process after being in business from May 2003 to August 2008. Iverson and his wife have $1.2 million in assets and about the same in liabilities. The assets mostly consist of the five homes that will be returned to lenders, including their own $285,000 residence on Outlook Avenue in Boise, two duplexes in Nampa and two other mid-range homes. The liabilities largely entail the mortgages on the homes, taxes and credit card bills.
Slowdown nails contractors: Dozens of Idaho small business owners … Idaho Business Review, United States – 2 hours ago Most of the rest of their liabilities consist of medical bills, a car loan and credit card debt . · Boise home builder and contractor Russ Iverson filed for …