Texas Rep. Ronald Reynolds Files Chapter 7 Bankruptcy

by San Antonio Attorney

After dealing with a wave of legal problems in the past few years involving his personal injury practice in the city of Houston – lawsuits that cost him a lot of money, criminal convictions and license suspension — Texas Rep.  Ronald Reynolds has filed for Chapter 7 bankruptcy.

According to court documents, the beleaguered politician has about $1.3 million in debts, which include $700,000 to previous clients who were awarded by the court with money after filing lawsuits against Reynolds for not giving them their part of legal settlements.

For example, Nancy Calloway has been awarded $504,000 in damages by a county judge over a malpractice lawsuit, accusing he indecently kept the settlement money she was supposed to get from a case involving the death of her child.  Court papers show that Reynolds owes $450,000 to Calloway.

He also owes a total of $450,000 to imaging centers and medical providers, about $3,000 in unpaid toll charges plus $15,000 to the Texas Ethics Commission.  The legislator is delayed in filing the finance reports of his campaign to the ethics commission.

His bankruptcy filing reveals the Chapter 7 liquidation was filed in August.  The Bankruptcy Code states that Chapter 7 is for debtors who have difficulty paying debts and seek their debts to be discharged.  But there are certain debts, such as penalties, fines, forfeitures, and criminal compensation responsibility, which are not dischargeable in bankruptcy.

Notwithstanding a conviction for illegally soliciting five clients last year and a long time of struggle in similar court cases, Reynolds received the highest number of votes in a run-off election against Angelique Bartholomew.  He will face Republican Ken Bryant in the general election come November.

Under the Bankruptcy Code, there are 19 categories of debt that are not dischargeable.  Other types of debts that do not belong within these categories can be forgiven.  To find out what debts you can wipe out in bankruptcy, talk to an experienced Bankruptcy Lawyer San Antonio.

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