Matthews-based homebuilder J.S. Kempf & Associates filed for Chapter 7 bankruptcy this week, listing assets of less than $50,000 and more than $4.4 million in liabilities.
The company built homes in neighborhoods including The Palisades, a luxury home development near Lake Wylie, and The Club at Longview, off Rea Road in Union County just south of Mecklenburg.
A Chapter 7 bankruptcy filing indicates the company is planning to liquidate its assets, as opposed to shedding debts and reorganizing, as is done in Chapter 11 bankruptcy filings. More than 30 percent of bankruptcy filings in the Charlotte area this year have involved construction-related companies.
Kempf's secured creditors, according to court documents, include First Horizon Construction Lending, owed $334,000 and RBC Builder Finance, owed $365,000.
The largest creditors with unsecured claims include BB&T, owed $2.1 million; and Fifth Third Bank, owed $1.3 million.
In the Charlotte region, experts have said the housing market's collapse and the ripple effect that's had on related businesses has led to a record number of local contractors, developers, building suppliers and others seeking Chapter 11 bankruptcy protection. Staff researcher Maria David contributed.
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