Wisconsin Bank Exec Files Personal Bankruptcy

James Farrell, president and chief executive of financially ailing Evergreen State Bank, has filed for personal bankruptcy protection. Farrell and his wife, Kathleen, filed Chapter 7 bankruptcy in the U.S. District Court in Madison, Wisconsin, listing assets of less than $50,000 and estimated debts of between $1 million and $10 million.From an article by Judy Newman on http://host.madison.com/wsj, “The Farrells’ attorney, Denis Bartell, said that Mr. Farrell bought a large amount of stock [2,000 shares] in the privately owned bank a number of years ago, and ‘borrowed heavily’ from Johnson Bank and Middleton Community Bank to make the purchase.” Bartell continued, “’…Unfortunately, the world has changed and the stock is worth far less than what he owes on it. The lenders want to be paid.’” Farrell allegedly owes the two banks over $2 million according to his attorney and Evergreen State Bank has a lien on Farrell’s vacation home in Florida.Evergreen State Bank, which is reported to be suffering from a large number of defaulted loans, is under federal order to boost its capitalization. Farrell sent a letter to his bank’s shareholders on October 29, 2010, saying that the bank’s capital levels have fallen to a level that federal regulators deem “critically undercapitalized.” He reported that bank officials currently are seeking investors to pump funds into Evergreen State or, alternately, find a company that will acquire the bank. Farrell added that “’the value of the company’s common stock will likely be diminished substantially and may even be rendered worthless.’”Are you experiencing extreme debt due to failed real estate investments or other difficulties? Call Legal Helpers toll-free 800-260-1402 today for your initial free consultation or come into one of their 100 sites across the country. For experienced and knowledgeable Chapter 7 or Chapter 13 personal bankruptcy assistance, trust the attorneys from Legal Helpers, www.legalhelpers.com. 

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