Former Chattanooga auto dealer Joe Prebul has agreed to take bankruptcy, his attorney said Wednesday.
Attorney Tom Ray said the Prebul liabilities far exceed his assets.
Attorney Ray said, "It will be a Chapter 7 bankruptcy where the debts are liquidated, not a Chapter 11 where the debtor seeks to pay them all off."
Creditors last week had taken action in Bankruptcy Court to seek to force the personal bankruptcy of Prebul, who is also facing federal wire fraud charges in New York City.
A motion was filed on Tuesday stating that Prebul would not oppose the bankruptcy.
A number of documents were then filed in his behalf on Wednesday outlining his personal finances.
Assets are listed at $241,083. However, attorney Ray said Prebul holds several properties, including sites of his former dealership. He said values of those properties "are unknown in the current economic climate."
Liabilities are listed at $22.4 million.
That includes $10,488,247 held by secured creditors and $11,999,615 by unsecured creditors.
The papers note that Capital Mark Bank has taken action to garnish 47,131 shares in the bank that had been held by Prebul, who was one of the bank's founders.
Capital Mark Bank has a warrant to garnish 3716 additional shares.
Capital Mark Bank recently gained a judgment in Chancery Court for $738,056 against Prebul.
Attorney Ray said Prebul likely will be able to keep his home on Brady Point Road on Signal Mountain.
Prebul is apparently currently working as a broker selling airplanes.
He asked permission of Federal Court in New York to make a trip to inspect an airplane out of state.
A pretrial hearing is set in New York City on Friday morning on his criminal case there.
That involves charges brought by his brother-in-law, Danny Bensusan, who said he transferred millions of dollars to Prebul, believing it was being invested for him.
He said Prebul did not invest the money, but used some of it to prop up the failing dealerships and for a lavish lifestyle.
Prebul had filed a counter-suit.
Secured claims include First Bank of Tennessee in Dayton, $1.6 million; JP Morgan Chase Bank of Dallas, Tex., $7.5 million; Northwest Georgia Bank, $457,000; and PHH Mortgage of New Jersey, $213,000 and $600,000.
Claims against his property were listed as Dayton property, $1.6 million; Chapman Road property, $7.5 million; Amnicola Highway, $457,000, and his home on Signal Mountain, $853,222.