Another Orthodox Jewish congregation has sought protection from federal bankruptcy laws due to outstanding bank debts.
On Monday, Chabad House Lubavitch of Palm Beach, in North Palm Beach, filed Chapter 11 bankruptcy reorganization. The U.S. Bankruptcy Court filing lists debts of more than $1 million and assets of more than $1 million.
In an interview Tuesday, Rabbi Shloime Ezagui said the Chabad has been unable to make loan payments because contributions from patrons dropped off during the recession.
“What’s happening is we need money,” Ezagui said.
Chabad House Lubavitch, located on Prosperity Farms Road, is the second Palm Beach County Chabad to seek protection from U.S. bankruptcy laws. Last June, Congregation Chabad-Lubavitch of Boynton Beach filed Chapter 11, in a bid to stop the foreclosure of its property. After a donor stepped in to pay off part of a $3.8 million overdue loan to the Chabad’s bank lender, the foreclosure lawsuit was settled and the Chabad emerged from bankruptcy in December.
(Read More: Palm Beach Post)