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Ex-Rep. Ada files for bankruptcy
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Posted on Mar 16 2009
Former congressman Martin Borja Ada has filed a bankruptcy petition in the U.S. District Court for the NMI.
Under a Chapter 7 bankruptcy petition, Ada claimed to have a $192,424.86 in total assets, but listed $267,919.88 in total liabilities.
The bulk of the former lawmaker’s assets are real property worth $188,200.
Ada’s liabilities consist of $199,400 that he owes creditors holding secured claims, plus $68,519.88 from creditors holding unsecured nonpriority claims.
Bank of Guam is among the creditors holding secured claims. Ada said the bank has a $199,400 claim.
Ada also listed Marianas Visitors Authority as among the creditors that he owes $6,239 for “unknown reimbursement of travel expenses.”
Under a Chapter 7 bankruptcy petition, most assets of the debtor are liquidated as quickly as possible to pay off his creditors to the extent possible and to free the debtor to start anew.
Last month, Bank of Guam filed a foreclosure lawsuit against Ada for allegedly refusing to pay over $153,398 in loan plus interest and late fees.
