Mon Mar 15 2010
It’s unclear if creditors will get their money from the bankruptcy filed by former local auto dealer Jeff Sachs, which listed almost $2 million in liabilities and about $800,000 in assets.
Sachs told The State Journal in July of 2008 that all debts would be paid when his dealership closed. But according to court bankruptcy documents, he lists more than 140 creditors with debts ranging from $100 to $861,000 for loans, merchandise and services.
Sachs’ motion seeking Chapter 7 bankruptcy was filed in U.S. District Court in Delaware where he lives. It lists his employment as general manager at Lincoln Willis Chevrolet in Middletown, Del., at a monthly salary of $10,000.
He lists about $9,100 in personal property, including $5,500 in security deposits, $2,500 in personal goods, $800 in clothes and a $300 Smith & Wesson .38 caliber handgun.
However, Christopher Frost, professor of law at the University of Kentucky, said personal property up to $10,800 is usually exempt from bankruptcies.
Sachs also owns 1.8 acres of land at 925 Versailles Road that is valued at $775,000, according to the Franklin County Property Valuation Administration. The land includes a 5,000 square-foot office and 5,100 square-foot garage that currently houses the Bob Allen Chrysler, Jeep and Dodge dealership.
However, the land is secured by an $861,000 loan from Community Bank & Trust in Pikeville.
Frost said any property subject to a lien or other interest is used to satisfy secured creditors such as Community Bank & Trust.
“They would have first crack up to the amount of the claim,” he said.
Sachs claims the property is worth $825,000. In that case, Frost said there might not be any assets to auction off.
“Sometimes there’s nothing left to sell or distribute,” he said. The bankruptcy court recently sent out letters to creditors claiming a dividend could possibly be paid. Chapter 7 bankruptcy uses liquidation to repay debts.
Unsecured creditors have until February to file a claim for debts. Stephan Holfeld, Sachs’ attorney in Camden, Del., did not return a call seeking comment.
A number of large national corporations were listed as Sachs’ creditors, including:
>Fifth-Third for a $372,000 loan
>General Motors for $80,500 in merchandise
>Chase for a $50,300 loan
>Bank of America for a $45,500 loan
>Autotrader.com for $19,500
>Verizon for $5,000 in services
>AT&T for $3,200 in services
Sachs was also listed as owing money to several local merchants and businesses including:
>Commonwealth Credit Union for a $22,100 loan
>Franklin County for $17,200 in undisclosed debts
>Hollbrook towing for $1,100 in services
>Robinson Oil for $900 in merchandise
>1 Source Computer Solutions for $350 in services
>Penn Auto Parts and Services for $200 in merchandise
According to court documents, Sachs was also living beyond his means after moving to Delaware. After taxes and withholdings, Sachs reported a monthly salary of $6,600.
His reported expenses include:
>$2,800 for rent for a two-story Colonial-style home
>$700 for utilities
>$650 to lease a 2008 Chevy Suburban
>$600 for food
>$400 for clothes and laundry
>$400 for medical expenses
>$400 for insurance
>$300 for a car payment
>$300 for transportation
>$300 for pet care
>$50 for entertainment
The total monthly living expenses are $6,900 – about $300 more than Sachs’ income.
The home sits on .75 acres and has 3,400 square-feet of living space with 12 rooms, four bedrooms, a family room and two-and-a-half bathrooms. It’s valued at $138,000 and was built in 2008 according to the Newcastle County property assessment office.
Before leaving in August 2008, Sachs was released from the $525,000 debt on his home in the Two Creeks subdivision, according to the Franklin County Property Valuation Administrator.
The bank sold it in September for $490,000. The home at 142 Saratoga is a one-story brick building with 3,900 square-feet and an 860 square-foot garage.
About 40 jobs were lost when the Sachs auto dealership closed – he blamed the poor economy and slumping sales in trucks and SUVs.
Sachs has been in Frankfort since 1983, and in 2003 he was the top GM dealership in the area, Sachs said.
At the height of his success, Sachs employed about 100 and sold about 2,000 vehicles each month, he said.
It was a “very sad day,” when he dealership closed, Sachs told the State Journal in 2008.
“I’ve had wonderful customers and wonderful employees so it’s pretty tough to be mad,” he said at the time.
The lot sat empty for a year until Gates Nissan purchased the property this summer and moved into the new facility in August. Executives declined to disclose the purchase price but the 9.7-acre lot was valued at $3.8 million according to the PVA.
Comments
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Next 10 Comments of 42 Total Comments
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42.
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Posted by war_vet_09 November 20, 2009
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he did all customers wrong and ripped a lot of people off !!! and is a crook ...
just like his dad, just like his son ... it's crazy that you could have 3 generations of losers that take advantage of people ... now they are seeing that karma cycles back in true form .... |
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41.
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Posted by drwhit November 20, 2009
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The information all comes from public documents that are filed in court. How do you get it wrong?
If anyone got it wrong, the document was...how do you say....embellished at the source. |
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40.
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Posted by maryshera November 19, 2009
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Jaybird, you make about as much sense as a football bat.
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39.
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Posted by frankfortgal85 November 19, 2009
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Re Need3Speed
If you think the threat of heartworms is not real you are sorely mistaken. I rescue dogs on a frequent basis and about 1 in every 10 dogs I find is HW positive. AND in recent years the threat of Heartworms has only been increaseed because of Hurricane Katrina. All the stagnent water sitting there for so long only bred mosquitos more and then when the dogs that were rescued from that disaster were sent out across the country it only bred the Heartworms more and spread them to other people's animals. You would not know if your dog had Heartworms or not until you had it tested. They usually don't show the signs of it until they are very sick and nearly unsaveable. So if your dog gets sick and you don't know why then there you go. |
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38.
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Posted by JAY BRUCE November 19, 2009
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YOU DONT PAY 2800.00 A MONTH RENT ON A 138000.00 HOME LOL
I THINK PAUL GLASSER GOT ALOT OF THIS STORY WRONG. 400. FOR INSURANCE LOL IS THAT THE TOTAL FOR LIFE , HEALTH , AUTO ? MAYBE. DO YOU ALL REALLY MISS SACHS THIS MUCH OR ARE YOU JUST NOSEY ? |
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37.
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Posted by Gina November 19, 2009
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By the way, the least expensive 3,400 square foot, 4 bedroom houses that I found listed in Middletown, was between $359,900 and upwards of $500,000. Of course there is the foreclosure market. I did find one listed for $225,000.
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36.
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Posted by Gina November 19, 2009
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Advantage Multi for cats: 3 month supply: $33.00
(treats fleas, mites and heartworm) Friskies Feline Favorites: 3.15 pounds: ~$3.45 Arm and Hammer Scoopable Litter: 10 pounds: $8-10 Once a Year Rabies shot: $10 at the county clinic Sum total for a month's cat care supply: $22.00 Since our cat spends most of his time outside, we treat our yard twice a year. Add that in at $20.00 per treatment and that adds 1.67 to the month. New total: $23.67 a month A yearly check-up: ~$80, that is $6.67 a month Adjusted new total: $30.34 a month I am still having a hard time seeing $300 a month for pet care. Are his animal(s) ill and needing constant treatment? Is this the $300 overage on his monthly outgoing monies? This list just seems too inconsistent with reality. |
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35.
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Posted by JAY BRUCE November 19, 2009
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What a bunch of 2face azz, Jeff Sachs was very good to Frankfort as he and his employees help alot of people in that town. Tell me a time when he said no to any one that asked for help. When that store closed alot of people still owed it money from loans or repair bills that they could not pay. talk to his employes that worked for him a long time , they were the best paid in the business, that is why they stayed there for so long. the only ones you hear from was the lazy ones or the ones that stole from him.
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34.
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Posted by smartgirl1 November 19, 2009
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frankfortgal85, how much is spent on a pet depends on its size. With a small dog you obviously don't need to spend as much on food as with a big one. Cats also don't eat much if they are outdoor cats. They catch more of their food themselves.
Now how much you spend on flea treatments, shots, and whatever else... some overdo it. Like need said, you don't have to buy into everything big pharma or the vet 'recommends'. |
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33.
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Posted by Zebec November 19, 2009
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"Sachs told The State Journal in July of 2008 that all debts would be paid when his dealership closed. But according to court bankruptcy documents, he lists more than 140 creditors"...
Once you lose your integrity, it's over. Those 140 creditors know how little integrity the man has now and in the future. A house less than two years old with 3,400 sq. feet is valued at $138,000? What a complete load of crap. Sachs better be careful. Karma has a way of tracking you down no matter where you go to hide. ;) |
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