MOBILE, Ala. (AP) -Morris C. Sears, 63, had run ABBA Bonding from his home since 2001 despite being told twice by the state Insurance Department to stop the construction bond business.
Sears had initially sought Chapter 11 bankruptcy protection
against what he says aren't legitimate claims.
U.S. Bankruptcy Judge Margaret Mahoney granted a creditor's
request to switch the case to Chapter 7, which forces asset
Sears sold bonds that are used in the construction industry to
ensure a project's completion.
Creditors he listed in court filings included the Internal
Revenue Service and the city of Mobile. He estimated his
liabilities at between $1 million and $10 million.
Information from: Press-Register,
(Copyright 2009 by The Associated Press. All Rights Reserved.)