Congressman Hinojosa files for bankruptcy
STAFF AND WIRE REPORT
Feb. 10, 2011 at 6 p.m.
Updated Feb. 9, 2011 at 8:10 p.m.
No new developments are available in Congressman Ruben Hinojosa's bankruptcy filing, said Eduardo V. Rodriguez, Hinojosa's attorney.
Hinojosa, whose District 15 includes covers DeWitt, Goliad and Refugio counties, filed for bankruptcy in December, according to a written statement released last week.
Rodriguez would not comment any further regarding the bankruptcy filing.
The bankruptcy was filed as a result of a business loan he had guaranteed for his family's business, H & H Meat Products in Mercedes, a city in the Rio Grande Valley, the congressman said in a written statement.
"Although over the last 14 years I had no managerial responsibility or oversight of H & H, I remained contingently obligated on a bank line of credit of H & H when it was forced into bankruptcy due to the recent economic downturn and financial market meltdown," Hinojosa said in the statement.
The Dec. 18 filing in federal bankruptcy court shows Hinojosa has $2.9 million in liabilities and $2.6 million in a claim by Wells Fargo Bank, according to an AP report.
"I have done everything humanly possible to avoid filing for bankruptcy protection to no avail," he said in the statement. "The bank debt of H & H was more than I could handle financially."
Lenny Anzaldua, president of the Refugio County Chamber of Commerce, was surprised to learn about Hinojosa's bankruptcy filing.
In late 2010, Hinojosa paid a visit to Refugio to present grants the county received.
The latest financial hurdle doesn't affect Anzaldua's admiration for the congressman, he said.
"Times have been hard for everybody," Anzaldua said. "With the downturn in the economy, bad things happen to good people."