HASTINGS, Mich. — The corporate officer of a Hastings construction company under investigation by the FOX 17 Problem Solvers has filed for bankruptcy.
On February 19, Jerold Saeman, who runs Bay to Bay Building Concepts, LLC, submitted a Chapter 13 bankruptcy petition to the U.S. Bankruptcy Court for the Western District of Michigan.
According to court documents, Saeman listed more than $258,000 in total assets and close to $912,000 in total liabilities.
Saeman’s largest creditors include Eikenhout, Inc’s unsecured claim of $359,889 and Adventure Credit Union’s secured claim of $125,000 and $22,246 listed as unsecured.
In the filing, Saeman lists several dozen Bay to Bay Building Concepts, LLC customers as unsecured creditors but does not list how much they are owed and disputes his liability in their claims.
The Michigan Department of Licensing and Regulatory Affairs (LARA) suspended Saeman and Bay to Bay Building Concepts, LLC’s residential builders licenses in July 2023 over alleged violations of the state’s occupational code.
RELATED: PROBLEM SOLVERS: State suspends Hastings construction company's license amid consumer complaints
Complaints filed by the agency say they, among other things, failed to complete jobs and perform up-to-code work.
Bay to Bay Building Concepts, LLC and Saeman settled with LARA last fall, but as of January 2024, they still needed to pay back $66,705 to 12 homeowners included in the case.
RELATED: PROBLEM SOLVERS: STATE: Hastings construction company still owes $66K in restitution payments
It’s unclear whether the bankruptcy filing would impact the amounts owed to those people. A spokesperson for the agency declined to comment when contacted by FOX 17 on Tuesday.
In a statement to the Problem Solvers, James Oppenhuizen, an attorney representing Saeman, said he "reluctantly" filed for bankruptcy to ensure fair and equal treatment of all his creditors:
"Jerold M. Saeman reluctantly chose to file chapter 13 bankruptcy because it was the only way to ensure that all his creditors were treated fairly and equally. Chapter 13 bankruptcy provides him the ability to make a good faith effort to repay his creditors while still providing for the needs of his wife and children.
"The deciding factor for Mr. Saeman was that a number of default judgments had been entered against both him and Bay to Bay Building Concepts, LLC in the Barry County Circuit Court because neither he nor the company could afford to pay an attorney to file answers to complaints or provide factual defenses to all or part of the allegations. The plaintiffs asked the Barry County Circuit Court to appoint receiver(s) in their cases. If receivers were appointed, they could take all the assets and all future revenue and earnings from both Bay to Bay Building Concepts and Mr. Saeman personally. All those assets and funds may have been used for the benefit of those judgment creditors, and the result could have excluded any other creditor who was not known or involved in the lawsuits. It may have also left Mr. Saeman, his wife and children at the mercy of the receiver(s) for their daily needs.
"Where the receivership may have unfairly benefitted some and left others completely out, chapter 13 bankruptcy requires equal treatment of similarly situated creditors. It also ensures that debtors like Mr. Saeman, can make a good faith effort to repay creditors based upon their ability to earn money over 3 to 5 years (federal law decides whether it is 3 or 5 years). Payments and compliance with federal law are overseen by neutral, professional bankruptcy trustees, the United States Trustee, and the United States Bankruptcy Court. During the process, the individual is able to maintain a reasonable standard of living for that individual’s family. Mr. Saeman expects to file a plan that provides for repayment in line with the Bankruptcy Code’s requirements within the next 14 days and will comply with federal law in doing so.
"I do not represent Bay to Bay Building Concepts, LLC or any other company owned by Mr. Saeman and cannot comment on or discuss anything related to any such company’s obligations, debts or lawsuits related to any such company. Mr. Saeman has ceased operating Bay to Bay Building Concepts, LLC."
RELATED: Hastings construction company owes former employee $35K in unpaid wages, other fees
