Published: April 05, 2007 11:22 pm      

Timeline set for objections to Marion’s bankruptcy case

The city of Meridian has until May 9 to object in U.S. Bankruptcy Court for the Southern District of Mississippi to the town of Marion’s petition for Chapter 9 bankruptcy protection.

Objections must be filed with the office of the Clerk of the U.S. Bankruptcy Court.

If any objections are filed with the court, a hearing will be held on May 17 at 9 a.m. in U.S. Bankruptcy Court in Jackson. After a hearing, the court may dismiss the petition if the court finds that Marion did not file the petition in good faith or if the petition does not meet the requirements of Chapter 9.

Marion owes the city of Meridian $400,000 for a past due sewerage bill. Marion Mayor Elvis Hudson filed for bankruptcy on the town’s behalf on Feb. 6.

A writ of garnishment was filed against the town of Marion, meaning all the town’s funds were frozen — up to the amount owed — until the judgment is paid off. When the city of Meridian completed its necessary paper work, it proceeded to Citizens National Bank to start levying its garnishment against the town of Marion.

Marion’s checking account was frozen at the same time the town filed for bankruptcy. Hudson said then that the town’s assets were frozen for about 15 minutes.

Judge Billy G. Bridge on Jan. 24 ordered that the town of Marion must pay the city of Meridian for the outstanding sewerage bill. Hudson has said Marion is unable to pay the amount, and has requested the city of Meridian forgive the debt.

Meridian Mayor John Robert Smith said then that he has no authority to “give away the assets that belong to the people of Meridian.”