Tennessee home builder Blalock Homes filed for Chapter 7 bankruptcy on November 24, 2020, even after experiencing a large revenue increase in 2020.
Blalock Homes states in their bankruptcy filing that they owe $1.2 million to creditors — most of which is owed to general contractors, subcontractors, and suppliers, according to the home builder’s list of unsecured creditors.
At the time of their bankruptcy filing, Blalock Homes reported having:
- $68 in total checking
- $30,799.74 in accounts receivable
- $43,797.74 in total assets
Between January 1, 2020 and the bankruptcy filing data, Blalock Homes posted $2,437,304.16 in gross revenue. From the prior year between January 1, 2019 and December 31, 2019, Blalock Homes’ bankruptcy filing states the company earned just $88,934 in gross revenue.
Between January 1 and December 31, 2018, Blalock Homes’ gross revenue was $4,976,170.
What is Chapter 7 bankruptcy?
As explained by USCourts.gov, Chapter 7 bankruptcy, “provides for ‘liquidation’ — the sale of a debtor’s nonexempt property and the distribution of the proceeds to creditors.”
Instead of filing for Chapter 7 bankruptcy, USCourts.gov suggests that debtors may prefer to remain in business and avoid liquidation by filing for Chapter 11 bankruptcy.
Unlike in Chapter 13 bankruptcy, Chapter 7 does not require the filing of a plan of repayment. With Chapter 7 bankruptcy, USCourts.gov states “the bankruptcy trustee gathers and sells the debtor’s nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code.”
A Chapter 7 bankruptcy filing also means that part of the debtor’s property can still be subject to liens and mortgages that pledge the property to additional creditors, while the debtor may be allowed to keep certain “exempt” property. However, a trustee can liquidate the debtor’s remaining assets, which could result in a loss of property when filing for Chapter 7.
List of creditors from Blalock Homes’ bankruptcy filing
Unsecured claims
According to Blalock Homes’ official bankruptcy filing, the home builder has 70 creditors with unsecured claims totalling $1,133,485.11.
Below are 44 creditors of note — the majority of which are contractors, subcontractors, or suppliers — with outstanding debt totaling $1,002,069.06. The individual debts range from just $9.56 to over $83,000.
- Alexander Backhoe & Dozer – $83,821.09
- American Guttering – $3,380
- Andy’s Pool Service – $7,963.61
- Associated Masonry Products – $45,941.21
- Bozman Sign Company, Inc. – $1,882.93
- C&S Hearing, Air & Electrical, Inc. – $17,776.83
- Carpet Den, Inc. – $6,002
- Castilleaux Flooring – $3,998.75
- Conaway & Company – $5,660
- Cox Interior, Inc. – $29,237.30
- Crossroads Building Supply, Inc. – $539,822.72
- DAL Tile – $1,360.86
- Discount Plumbing & Electric Supply – $1,887.63
- Don Wood Plumbing Co. – $450
- Fusion Site Services – $568.08
- G&M Plumbing Company, LLC – $14,631.68
- G.A.M. Engineering, Inc. – $680
- Granite & Stone Design, Inc. – $7,146.50
- H&J Concrete, LLC – $4,856.30
- Home Builders Association of Middle TN – $577
- Infinity Electric – $18,258.20
- Irma Fentanes Gonzalez, LLC – $400
- Lewis Glass Company, Inc. – $4,647.61
- Meridian Brick – $1,378.19
- Middle Tennessee Electric – $9.56
- Mora Construction – $41,140
- Mountain Air Mechanical, LLC – $400
- Mr. Tile – $4,809
- Nashville Fireplace Distributors, Inc. – $5,230
- Opus Luxury Cabinets, LLC – $2,767.20
- R&M Carpentry – $2,965.00
- Richardo Galvez d/b/a RJ Masonry – $4,100
- SCP Distributors, LLC – $1,119.40
- Sharp Services d/b/a A+ Gutters – $2,452
- Smith Constructors – $2,400
- Sun Splash Contracting – $75,841.18
- Tenn Roofing – $12,420.00
- Tennessee Glass – $2,155.50
- The Cutting Edge – $20,682
- The Granite Place – $9,015
- The Hayes Company – $3,627.28
- Thomas Lain Cabinetry – $10,442
- Waste Solutions of Tennessee – $904.14
- Wholesale Hardwood Interiors, Inc. – $1,260.06
Secured claims
The Blalock Homes bankruptcy filing lists one secured claim from the Peoples State Bank of Commerce totaling $150,000. In the filing, Blalock Homes states that the collateral backing the claim is worth $30,779.74.
Litigation and disputes surround Blalock Homes
As of the bankruptcy filing in late November of 2020, Blalock Homes is currently involved in litigation over two pending disputes.
Counterclaim for wrongful lien
According to the bankruptcy filing, Blalock Homes is involved in a pending lawsuit with Crossroads Building Supply (CBS) following a counterclaim against CBS for wrongful lien and related damages.
On January 22, 2020, CBS filed a mechanics lien against Blalock Homes in the amount of $110,837.42 for furnishing lumber, beams, joists, flashing, and other building materials at the Southern Preserve housing lot in Williamson County, TN – a property that is owned by Carbine & Associates, and not Blalock Homes.
10 months later, on October 14, 2020, the mechanics lien was released, according to a lien affidavit processed with the Williamson County clerk’s office. A lien release cancels a previously filed mechanics lien, partially or in full.
Breach of contract
On July 18, 2018, a plaintiff Bhadresh Patel filed for breach of contract against Blalock Homes with the Williamson County Chancery Court. As of November 2020, the case is still open.