RICHMOND, VA (WWBT) - Richard Reynolds' former business partner wants more proof that the heir to the Reynolds fortune is broke and has no assets to pay creditors.
Reynolds now has to give the court additional documentation to verify his Chapter 7, personal, bankruptcy filing. The former owner of bankrupt "Thermo-Press Norvell Awning" corporation owes many people and $300,000 in taxes. According to his filings, Reynolds claims to have only $50 in the bank and no assets worth going after.
Reynolds had no comment walking into bankruptcy court with his lawyer yesterday. His former business partner, John Watkins, is trying to collect a $261,000 debt. Watkins raised questions about Reynolds income and trust fund.
The court wants to see more paperwork. We talked with a local attorney about Reynolds' personal bankruptcy filing.
"The IRS debts are not discharged but, the IRS could force the sale of the house even though the debt might not be owned by the wife as well," said attorney John Moore, Coates & Davenport. "It is now up to the trustee to collect and see if there are any assets or not, if he discovers assets to be distributed to the unsecured creditors."
Notices would be sent out, informing creditors to file their claim. Moore says creditors must be able to show Reynolds has some personal liability in order to collect from him and not the corporation. Another hearing is scheduled for November 30.