Marshall Chesrown is known for developing multiple upscale housing complexes in Spokane, Washington. His most famous development was the Black Rock luxury community, a gated golf community, near Lake Coeur d’Alene. In May, 2013 Marshall Chesrown filed for Chapter 7 bankruptcy with the state of Florida. Chesrown filed in the state of Florida due to the fact he currently rents a place there in Delray Beach. Chesrown appeared in court on July 1 although as of now, a judgment has not been made.
According to the one hundred and seventy seven page long Chapter 7 bankruptcy filing, Chesrown has amassed a whopping seventy million dollars in debt due to various firms, businesses, and individuals. Chesrown owes money too various businesses that helped him develop one or more of his upscale communities such as ACI Northwest who Chesrown owes $.14 million too, Northwest Fence Company who Chesrown owes $95,000 too, Kootenai Electric who Chesrown owes over $100,000 too, and Polin Young Construction who is owed $145,000. In the bankruptcy filing, Chesrown also stated that much of his debt had accumulated from sixteen different lawsuits, six of which were still ongoing at the time of the filing. In the filing, Chesrown listed his assets $514,000 most of which came from his house near Spokane, Washington. Chesrown monthly income equaled nearly $13,500 a month at the time of filing but his monthly expenses added up to nearly $24,000 a month, almost double his take home. The bulk of his monthly expenses are from $16,000 a month mortgage payments on two homes and a $4000 a month payment on his Mercedes.
Marshall Chesrown grew up in Spokane, Washington. After living a comfortable, although not flashy childhood, Chesrown moved to Denver where he built a small fortune with an automotive dealership. Over the years, Chesrown continued to add more car dealerships to his list of assets whose cash flow allowed him to develop multiple upscale communities in the Spokane area. Sometime in 2008, when the housing market crashed, Chesrown was hit with his first lawsuit on undeveloped communities. Due to the economic crisis, the automotive dealerships that Chesrown relied so heavily upon began failing as well. As the years passed, Chesrown was unable to pay off his lawsuits and debtors which led him to file for Chapter 7 bankruptcy in Florida in May, 2013.
Chesrown’s case just goes to show that no one is safe from bankruptcy. In today’s uncertain economic world, even the financially strong are vulnerable to the decaying markets.