Chapter 11 efforts for Waskom Brown & Associates and affiliated entity F.I.A., LLC terminated following evidentiary hearings
By Journal Staff
ALEXANDRIA, La. — Two related Chapter 11 bankruptcy cases tied to Natchitoches-based accountant and financial advisor David Waskom have been dismissed by the U.S. Bankruptcy Court for the Western District of Louisiana, with the court imposing a nine-month prohibition on refiling after granting creditor motions following evidentiary hearings.
The cases — Waskom Brown & Associates, LLC (Case No. 25-80219) and F.I.A., LLC (Case No. 25-80288) — were dismissed April 1, 2026, after hearings held March 18 and April 1. Both rulings were issued by U.S. Bankruptcy Judge Stephen D. Wheelis.
Parallel Chapter 11 Filings
Waskom Brown & Associates filed for Chapter 11 protection on April 15, 2025, initiating a reorganization proceeding that allowed the firm to continue operating as a debtor in possession while halting creditor collection actions.
Approximately one month later, F.I.A., LLC — a separate but related entity — filed its own Chapter 11 case. That filing stayed foreclosure proceedings initiated in state court by the BOM Bank, formerly known as Bank of Montgomery involving real property associated with the entity.
Under Chapter 11, debtors are typically afforded time to restructure operations, reduce expenses and propose a plan to repay creditors over time while maintaining control of their business affairs.
Court Grants Motions to Dismiss
In both cases, the Bank of Montgomery filed motions seeking dismissal. After conducting evidentiary hearings with participation from the debtors, creditor representatives, the United States Trustee and the Subchapter V trustee, the court granted the motions.
The court’s orders state that evidence was presented and that dismissal was warranted “for reasons orally assigned” during the hearings.
Court Imposes Rare Refiling Bar
In addition to dismissing both cases, the court imposed restrictions on future bankruptcy filings.
Each order includes a finding under 11 U.S.C. § 109(g) and an additional prohibition, resulting in a total nine-month bar on refiling for bankruptcy protection.
Findings under Section 109(g) are typically associated with cases in which a debtor fails to comply with court requirements or otherwise engages in conduct warranting additional limitations on access to bankruptcy relief. Such findings — particularly in Chapter 11 proceedings — are considered uncommon.
Structure of the Bankruptcy Cases
Court filings show that Waskom Brown & Associates reported minimal assets relative to its liabilities and listed numerous unsecured creditors, including financing companies and tax authorities.
The Chapter 11 process ordinarily requires debtors to demonstrate the ability to stabilize operations and generate sufficient cash flow to support a reorganization plan. During the pendency of the cases, debtors remain in possession of their assets and continue business operations while negotiating with creditors.
F.I.A., LLC’s filing provided additional protection by halting foreclosure actions tied to real property, while Waskom Brown & Associates’ assets were primarily described as furniture, fixtures and equipment pledged as collateral.
Testimony and Feasibility Concerns Raised
According to statements from counsel involved in the proceedings, testimony during the hearings included discussion of proposed funding sources and the feasibility of the debtors’ reorganization plans.
The court’s rulings followed the presentation of that evidence.
Outcome Ends Reorganization Efforts
The dismissal of both cases terminates the protections afforded under Chapter 11, including the automatic stay that had prevented creditors from pursuing collection and foreclosure actions.
With the cases dismissed and a refiling bar in place, the debtors are restricted from seeking additional bankruptcy protection for nine months, and creditors may resume enforcement actions under applicable law.
Key Elements
- Two related Chapter 11 bankruptcy cases tied to David Waskom were dismissed by the federal bankruptcy court.
- The dismissals followed evidentiary hearings on creditor motions filed by the Bank of Montgomery.
- The court imposed a nine-month bar on refiling, including findings under 11 U.S.C. § 109(g).
- Section 109(g) findings are uncommon in Chapter 11 and signal serious procedural deficiencies.
- Testimony during the hearings included discussion of funding sources and feasibility of the reorganization plans.
Bottom Line
Two parallel Chapter 11 reorganization efforts involving related entities tied to David Waskom were dismissed after evidentiary hearings, with the bankruptcy court imposing a nine-month bar on refiling — an outcome that underscores the failure of both cases to proceed to a confirmable plan and allows creditors to resume enforcement actions.
Sources: U.S. Bankruptcy Court filings, Western District of Louisiana, Case Nos. 25-80219 and 25-80288
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