Another local home builder has filed for Chapter 7 bankruptcy.
Paul Bischoff of Grover Beach filed two bankruptcy petitions this month in Santa Barbara Bankruptcy Court one for his personal estate, and one for his home-building company, Bischoff Properties Inc.
Under Chapter 7 of the federal bankruptcy code, a trustee is appointed to sell a company’s assets and distribute proceeds to creditors.
Bischoff, who is president and sole owner of Bischoff Properties Inc., listed assets of $3,100 and liabilities of $1.1 million in the corporation’s filing. The company has reported no income since 2011, when it made $75,000, court documents show.
The company’s largest creditors include accountant Jim Chambers of Nipomo ($500,000); Eric Ekdahl of Chino Valley, Ariz. ($213,000); Craig vonIlten of Arroyo Grande ($100,000); Matt Quaglino, trustee of the James Quaglino PST ($105,000); Hayward Lumber of Monterey ($67,000); and Roger Young Construction of Santa Maria ($50,000).
Lawsuits have been filed against Bischoff in San Luis Obispo Superior Court by Capital One, Hayward Lumber, Quaglino PST, Oak Meadow Home Owners Association and Bank of America. Hayward Lumber has also filed a suit against Bischoff Properties Inc.
Bischoff referred all questions to his lawyer, Sandra McBeth of Santa Maria, who said she could not comment beyond the contents of the filing.
According to Bischoff’s business website, Bischoff has built 29 homes.
He and his wife first built three speculative homes in 2001. “As the real estate market was very active at the time, the homes sold very quickly,” and Bischoff soon quit his job at a design engineer at Pacific Bell to build homes, the website says.
South County developer Greg Nester Construction & Development Inc. filed for Chapter 7 bankruptcy in June, according to bankruptcy records. Nester attributed the fall of his business to the sudden decline in housing demand in 2008, coupled with loans he could not refinance, he told The Tribune in July.