Bankrupt Memphis Developer Moves into Million Dollar Mansion

Memphis, TN – Controversial Memphis Real-estate Developer Rusty Hyneman has told a U.S. Bankruptcy Court that he cannot pay off over $69 million in debts, but he made a controversial move into a $2.3 million mansion in Shelby County.

Hyneman has asked the court to discharge much of his debt owed to 30 creditors. This past March, Hyneman sold a $4.1 million dollar home with the proceedings going to his debtors. A bankruptcy attorney may recommend a client sell off all assets to satisfy creditors.

The fact that Hyneman moved into the million dollar home is not illegal in itself, but raises questions about how he was able to afford a luxury home while in bankruptcy. An investigation into how he obtained the funds to get the home and when he moved into the home is being conducted. There are concerns that a family member or friend purchased the home using funds from Hyneman.

In bankruptcy court, Hyneman has stated that he had no money in his bank accounts and his bankruptcy attorney has asserted that he has no income. He filed for Chapter 7 bankruptcy protection in March of this year. 

Chapter 7 bankruptcy requires that the business of individual liquidate or sell off their assets in order to pay off their debts. Many unsecured debts are discharged by the courts under Chapter 7. A bankruptcy lawyer should be consulted to determine which filing is the best option for the person seeking bankruptcy.