Tuesday, April 07, 2015
David Wallace: I'm unemployed and living off my wife's income
David Wallace, who formerly held that position in Joplin is broke, unemployed and living off his wife's meager salary (which hopefully, will include commission in the near future.).
That information was included in documents filed today in U. S. Bankruptcy Court for the Southern District of Texas.
Wallace says he owes $11,544,047 and has $522,168.42 in assets.
The long list of people owed money by his firm, Wallace-Bajjali Development Partners, which was included in his first filing, are not listed as creditors in the latest filing. They are being sent filings in the bankruptcy action "for disclosure purposes" and that is understandable since Wallace appears to be saying that it is Wallace-Bajjali that owes the money and he has no ownership interest in Wallace-Bajjali.
Nor does he have ownership interest in page after page of companies listed on the filing, though he is still CEO of some of them.
Former Wallace-Bajjali employees, including Gary Box and Raymond Braswell, are not owed any money by Wallace, not is anyone else in southwest Missouri, with one notable exception.
Wallace takes ownership of $4.5 million in debt to New Prime, Springfield, the company that he borrowed $5 million from to get the Wallace-Bajjali operation in Joplin underway in 2012.
"Mr. Wallace personally guaranteed this debt," the document says. "The loan is secured by all assets of Wallace-Bajjali Development Partners."
Other people that Wallace-Bajjali left high and dry, including Gryphon Tenant, Linda Teeter Insurance, Stouffer Communications, Ness Design Group Architects, and of course, the City of Joplin, are listed as "vendors" for Wallace-Bajjali and not as anyone to whom David Wallace owes money.
Meanwhile, Wallace is doing his best to put his life back together, according to the documents.
He is jobless, but "Mr. Wallace is currently seeking full-time employment and during this time, he anticipates receiving income from consulting fees."
His wife had to go work on March 16, the document says. She is a senior living adviser at A Place for Mom and has "opportunity for commission in the future." Her income is listed as $5,000 a month.
Wallace also expects to make $5,000 a month as a consultant and that could be a big problem since he owes his ex-wife, Kathy Wingo $4,000 a month in alimony payments. Wallace lists $13,563 in monthly expenses and estimates a net income, including what his wife makes, of $6,860 a month, leaving him $6,703.30 in the hole each month.
Though he is supposed to have been paying the former Mrs. Wallace alimony for several months, he has only paid $9,250 to this point, the document indicates.
Fortunately, the former master developer's family is kicking in money to help make ends meet, "contributing funds to supplement the expenditures. As soon as (Wallace) becomes employed, these contributions will cease."
It has been tough for Wallace to adjust since his 2014 salary and bonuses totaled $165,000 and times were even better in 2013 when he received $246,419.
Fortunately, Wallace won't have to get rid of everything. He is claiming the new home he purchased, (with the $84,000 swimming pool he added), as exempt, as well as his $1,000 watch and many other lower ticket items.