Park Girl has declared bankruptcy
JoLeigh Ares’ Park Girl Sales LLC has filed for bankruptcy, bringing a screeching halt to attempts by creditors to collect what they claim the La Feria-based mobile-home business owes them.
“We are currently looking into how this affects our clients and how the lawsuit will proceed,” Texas RioGrande Legal Aid Communications Director Cynthia M. Martinez said in a written statement.
Legal Aid represents 43 residents in a civil lawsuit filed in December in state district court against Ares, Park Girl Sales, Park Girl Mobile Home Sales and other entities. The residents allege that they were defrauded when they leased or purchased mobile homes from Ares, her businesses and others.
Earlier this month, 444th District Judge David Sanchez directed the parties to enter into mediation in an attempt to resolve the matter. Most of the parties apparently were not aware of the bankruptcy action, which was filed Dec. 30 in the U.S. Bankruptcy Court, Southern District of Texas.
According to the United States Court website, filing a petition under Chapter 7 “automatically stays” most collection actions against the debtor or the debtor’s property. Furthermore, as long as the stay is in effect, creditors generally can not initiate or continue lawsuits, wage garnishments, or telephone calls demanding payments.
Chapter 7 of the Bankruptcy Code provides for the sale of a debtor’s nonexempt property and the distribution of the proceeds to creditors.
Park Girl Sales’ bankruptcy petition states that liabilities total $3,177,300 and that there are no assets.
The petition lists approximately 70 creditors. Only three of the creditors are on the list of 43 residents that filed the lawsuit against Ares, her businesses and others last year in state court.
The rest of the creditors on the petition appear to be other residents and, for the most part, businesses.
The bankruptcy petition lists the Texas Department of Housing and Community Affairs as a creditor; the petition specifies that the agency has a claim of $500,000 against Park Girl Sales.
The address listed for the agency is the Waco field office of TDHCA’s Manufacturing Housing Division.
Joe A. Garcia, the executive director of TDHCA’s Manufacturing Housing Division, said that the division does not have any claim against Ares or Park Girl Sales — or anyone — as the division only licenses and regulates the manufacturing, sale and installation of manufactured homes.
The state agency has been receiving and investigating complaints against Ares, doing business as The Park Girl, and Garcia reminds the public that any Texas consumer with a complaint regarding this retailer of manufactured housing should contact the Consumer Complaints Hotline at (877) 313-3023 for immediate assistance.
Furthermore, a consumer complaint form should be completed and mailed to the division along with evidence of activity such as bill of sale, purchase contracts, proof of purchase, receipts for deposits, refund checks that were stopped, or any other documentation proving that the consumer is due money, a home, or statement of ownership and location, formerly known as a title.
The division notes in its website that resolving a complaint involves documentation, investigation and resolution, which may take up to 180 days or more in extreme cases if the case is appealed, contested or taken to hearing.
Garcia said that the bankruptcy action that has been filed does not affect the state agency’s ability to investigate complaints.
Attorney Eric Arthur Liepins of Dallas represents Park Girl Sales in the bankruptcy petition. He was not available for comment Thursday.
