Church files for bankruptcy

The action was taken in order to protect assets until lawsuit s settled

Thursday, March 29, 2007

By Marcie Young
Charlotte Observer Staff Writer

One of Caldwell County's largest churches, which is embroiled in a $1.9 million lawsuit, filed for bankruptcy last week, pastors said.

Mountain Grove Baptist Church, a 4,000-member congregation in Granite Falls, filed for Chapter 11 bankruptcy, said the church's women's minister, Jan Chester.

Mountain Grove is embroiled in a lawsuit with former contractor David Gray, who says the church owes him $865,835 plus interest and attorney and court fees, for a new sanctuary and gymnasium he finished building in 2000.

The church filed bankruptcy Thursday after an N.C. Court of Appeals denied a stay of execution, which would have prevented the seizure of church property while the appeal is pending.

Filing bankruptcy, Chester said, allows the church to continue holding services without worrying about assets being seized until the suit goes to the Court of Appeals in the fall.


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