Nevada Bankruptcy Judge Refuses to Allow Switch To Chapter 7
U-S-A Capital Lending declared bankruptcy in April effectively freezing $962 million in investor's short-term mortgage loans. Now Nevada's largest lender is requesting a Federal bankruptcy judge switch the Chapter 11 bankruptcy filing to a Chapter 7 bankruptcy filing to allow for a liquidation of its assets. The judge refused to make the change so that the lender could remain in business and continue to manage the loans. The Nevada Mortgage Lending Division suspended U-S-A Capital from making any more loans until the bankruptcy case is sorted out.