Bostic wants to handle situation without bankruptcy
The economic crash hit many people hard, causing some to file bankruptcy and others to struggle to pay back their debts. For Stallings council candidate Ira Bostic, the lack of business caused him to default on two credit cards. Last month Union County District Court issued the second of two default judgments against Bostic this year. The first, Jan. 6, was for $13,009.53 plus 8 percent interest, to pay off a debt with American Express. The second judgment, issued Sept. 6, was for $5,416.23, to cover a debt with FIA Card Services.
“The two judgments in question are correct in their amount and content,” Bostic said. “I acknowledge the debt, and am working to resolve these problems without resorting to bankruptcy.”
Bostic operates a plastics machinery sales and liquidation company, HGB Corporation, which sells used plastics machinery for the film and synthetic fiber industries. In 2008, the market started drying up for used machinery parts, with companies looking to purchased used tools finding it hard to borrow money for the supplies.
“In 2008 things began declining in the financial industry, and I was forced to liquidate equipment owned by my company at reduced prices, and was left with a lot of inventory that is still sitting idle in storage in Tennessee,” Bostic said. “I have some projects that may revive when funds become more available to businesses needing good used equipment. In the meantime I have exhausted all company funds to keep above water, and have had to cover corporate expenses personally until that was no longer possible.”
Bostic said several companies still owe him money for purchased goods, but he doubts he’ll ever see 100 percent of what is owed. Additionally during that time, Bostic was diagnosed with ankylosing spondylitis, a type of arthritis that requires a special medication called Remicade, which is injected every six weeks at a cost of $6,000 per shot.
His lawyers advised Bostic to file for bankruptcy last year, but he rejected the idea, saying he wanted to work out his problems when business conditions improve.
To do that, Bostic said he’s working on an agreement with a collateral evaluation firm, where he would assist them in reevaluating the collateral for about 2,500 commercial loans on equipment in plants facing financial difficulty or those already shut down.
“This will require about five to six months to complete and will bring in some decent revenue, which will go a long way to get my debts under control,” Bostic said.
Seeing himself and others like him go from making a comfortable living to substantially less has been tough, Bostic said, adding he didn’t believe any of this would impact his service on the council, if elected.
“I am sincere about my desire to win a seat on council, and will devote my time and energy for the betterment of Stallings if elected,” Bostic said. “I am certainly not in the race for money, or to promote some hidden agenda, such as dismantling the police department.”