Judge rules High Point city councilman won’t have to pay back city debt
HIGH POINT, N.C. — The likelihood of City Councilman Foster Douglas ever paying back a debt owed to the city took a big hit Monday, according to the High Point Enterprise.
According to the report, U.S. Bankruptcy Judge Benjamin A. Kahn confirmed Douglas’ Chapter 13 bankruptcy protection plan. This plan keeps the City of High Point off the list of creditors that will be paid in the settlement.
Douglas’ proposal to pay $1,125 per month for five years to Bank of America, the Internal Revenue Service and the North Carolina Department of Revenue was approved by Kahn.
Douglas owes $32,216 in a federal judgment to the city. The city is considered an “unsecured creditor,” the report said. The debt settlement is not expected to be sufficient to pay Douglas’ unsecured creditors.
If Douglas agrees to the terms of the plan, the debt to the city will be “discharged,” meaning he will not have to pay it back.
Douglas filed for bankruptcy Dec. 16, 2013, to prevent his home from being auctioned off.
The Guilford County Sheriff’s Office had planned to auction off the home to settle the debt with the City of High Point.
The debt dates back to 2002, when Douglas and his brother sued the City of High Point. A judge ruled against the brothers, then ordered them to pay the city’s legal fees.
Read more: High Point Enterprise