Posted in: Business

JK Harris & Company File For Bankruptcy

JK Harris

JR Harris & Co. filed for bankruptcy on Friday following a class action lawsuit that would force the company to pay $4 million and a settlement claim owed to the Texas attorney general’s office for $1.1 million after they ruled that the company had misled customers.

In their official bankruptcy filings the company revealed that they owe their 20 largest unsecured creditors a total of $10.9 million (including the lawsuit and settlement numbers listed above). The filing also shows that much of the money owed is in relation to internet and TV advertising along with landlord judgments.

Following the bankruptcy filing the company must meet with officials in Texas court on Friday to discuss a request to force JK Harris into receivership over the $1.1 million settlement.

Accroding to the Post & Courier:

The bankruptcy filing in South Carolina pre-empted that and halted debt-collection efforts, but the Texas attorney general is also suing company founder John K. Harris personally.

John is reported to “care less” about the lawsuits filed against him after years of cash-flow problems, lawsuits and claims that his company misled customers, often by taking fees from consumers who didn’t qualify for the type of tax debt relief they were promising.

According to Harris his company is only worth about $7.5 million and he’s hoping he can sell off the company and re-hire his laid off employees for another venture in the future. Harris has stuck behind his employees, asking a judge on Friday for an emergency motion to pay $185,000 in employee wages.

Yet another example of corporate greed through misleading customers, does this bankruptcy case really surprise anyone?

Articles And Offers From The Web

Comments

3 Responses to “JK Harris & Company File For Bankruptcy”

  1. Donna Carpenter

    I paid JK HARRIS and they kept making re do all my paperwork over & over about every year, many Documents had to be notarized, difficult for me and just more expenses for me. I started on June 12, 2006 after they got the $$MONEY from me (I have copies of the cashier check June 6, 2006) . They had every excuse in the book…your case worker quit & took your file, so I quickly spent almost $41.15 to overnight the 4TH PACKAGE of ALL the Documents required which was extremely difficult as they REQUIRED all originals. I'm on DISABILITY and have an incurable disease and was always very ill, as I still am, but I'd get friends/loved ones to help get it done BUT OVER & OVER. They would NEVER call me back and I have recorded conversation of the many EXCUSES like we moved but have the same number or we have know changed from one case worker to a HUB program and are in training so they'd promise to call when finished. I did NOT have the money for a Computer & have spent more time handling medical problems than watching the news so I kept sending mail, leaving messages, NEVER returned any calls. BOTTOM LINE they fooled me, I can hardly make ends meet and it cost me so much money for NOTHING but the run around. The one thing I have is the COMPLETE & ENTIRE package of all there excuses, they even said I just days from being done and I mailed a $60..00 gift card for my new "QUE TEAM" to all enjoy coffee on me only to get a new letter requesting more Documents in the end of 2009 and they wanted my TAX RETURNS from 2007, they had 2 notarized copies I was on FULL Disability since 2004 and the also had a letter from my Doctor. WHAT A RUN AROUND JOKE and I feel it was all planned. Do I have any way of making a claim. I have tried & tried to reach anyone but I couldn't do it until now when I got a computer, I was too sick to even go to the library. Do I HAVE ANY RECOURSE AGAINST THEM OR AM I TOO LATE. That is so much money to me and I live in a trailer in CA. SO SAD. VERY DISAPPOINTED. CHEATED & LIED by JK HARRIS and Company. They just kept leading me to no where & I was so VERY INVESTED WITH THEM.