It’s not just individuals who are facing a decision as to whether to file bankruptcy.  Just a few months ago the Office of Thrift and Supervision entered a Cease & Desist Order against Birmingham based Superior Bank.  The 73 bank company was once a thriving operation.  However, for the last seven quarters the bank reported that loans “not being paid as agreed” have increased.   This is a clear sign of a bank in trouble.

So, a few days ago federal regulators sold off 73 of the banks.  That has caused the bank to consider filing its own bankruptcy.  The Birmingham News reports that the bank owes $122 Million but only has about $6 Million in assets.

As individuals continue to face challenges from banks rushing to foreclose, creating modification programs that are designed for failure for most borrowers and calling for substantial pay downs in order to renew otherwise performing loans, its certainly noteworthy to see a bank experience what many borrowers are experiencing.

One of the bank’s investors has recently filed a fraud lawsuit alleging that the representatives of the bank told him the bank was fiscally sound when it convinced him to invest $10 Million a few months ago.

The bank may say, what many borrowers say, “I thought I could turn this around.”  It hasn’t help many borrowers when they said it.

If you are facing financial difficulties, you should contact Knoxville bankruptcy attorney Dan Scott by calling 865-246-1050 for a free consultation.  We help people in Sevierville, Maryville, Knoxville and Jefferson City.