NW Housing Market Hits Bankruptcy Bumps

Harry Shafer Simpkins IV of Bentonville filed for Chapter 7 bankruptcy protection on June 6. He listed $1.3 million in assets and $2.5 million in debts, with $1.3 million of the liabilities unsecured debt.
On May 22, Michael K. Spainhower, who was in the construction business and operated several businesses such as Spainhower Inc. and Spainhower Enterprises Inc., filed for Chapter 7 protection. He listed $4.4 million in debt but only $874,000 in assets. And $3.3 million worth of the debts are unsecured.
Spainhower also is facing five foreclosure lawsuits and 11 collection lawsuits in state court. Those lawsuits will be put on hold while his bankruptcy case makes its way through the system.
“I’m sure the condition of the real estate market in Northwest Arkansas was a contributing factor, possibly the major contributing factor,” to Simpkins’ filing bankruptcy, said his attorney Theresa L. Pockrus of Fayetteville. “I have visited with numerous clients related to the construction industry. We haven’t seen the end of it yet.”