Doctors Debra and Sajid Ravasia of Spokane Washington jointly filed a massive $191 million bankruptcy in January of this year owing as many as 8,000 creditors. Perhaps even a bigger shock than the amount of the private Chapter 7 bankruptcy, is that the settlement that is proposed would allow the Ravasia couple to settle the amount by paying as little as $130,000.
The cause of the bankruptcy was claimed to be due to the failed companies run by Debra Ravasia, and caused a number of complaints from former clients who questioned the billing practices of the businesses. While many former patients praised their care from Dr. Debra Ravasia’s psychiatric practice, many accused her of excessive testing and that they received bills for appointments they never made. In fact, one former employee who wanted to remain anonymous, claims that she left the company out of concerns of how the company billed clients.
To further the drama, the bankruptcy trustee assigned to the bankruptcy case, found multiple inconsistencies and problems with the couple’s bankruptcy petition which included missing credit card disclosures, personal property worth nearly $500,000 not disclosed, and almost $15,000 worth of cash withdrawn immediately before filing bankruptcy. Additionally, the couple is accused of lying under oath concerning their ownership of a ski condo that they sold to Ravasia’s father for $1 yet continue to pay all fees and costs associated with the condo and still use it as a vacation home. Still despite all these inconstancies in the bankruptcy case, the settlement for $130,000 in cash or $175,000 from the couple’s deferred compensation plan was signed on August 1st of 2017.
Overall, the bankruptcy trustee’s decision to move forward with the settlement was due to the time and cost of an ongoing legal fight through hearings, a trial, and the appellate process would take, saying that this would outweigh the benefits of a quick settlement. In the case, anyone who believes to have a stake in the settlement must file a proof of claim by November 3rd, 2017 which means that the bankruptcy case will most likely be completed by the end of the year.