The real estate sector continues to feel the strain of the broader economic climate, with one local company seeking bankruptcy protection. Among the latest casualties is Assure Affordable Homes, Inc., which filed for Chapter 11 bankruptcy earlier this week.
Highlights
- Detroit-based real estate company, Assure Affordable Homes, Inc. filed for bankruptcy.
- The real estate company made this decision due to an imbalance in assets and liabilities.
- The company filed for Chapter 11 bankruptcy protection to resolve its current financial situation.
Assure Affordable Homes, Inc. Files for Chapter 11 Bankruptcy
Fluctuations in Detroit’s housing market have impacted developers across the region, including Assure Affordable Homes, Inc. The company is facing a significant imbalance in its assets and liabilities, which has led to this decision.
According to PacerMonitor, the company filed for bankruptcy on August 7, 2025. The petition was filed in the Michigan Eastern Bankruptcy Court by the debtor’s counsel, Alexander J. Berry-Santoro. Assure Affordable Homes, Inc., likely focuses on affordable housing development or management.
Imbalance in Assets and Liabilities
The petition filed in court shows that the company has a significant assets-to-liabilities imbalance. The company has reported less than $50,000 in assets against its liabilities of $1 to $10 million. The filing reports only 1-49 creditors listed, but indicates no funds available for distribution to unsecured creditors after paying for the administrative expenses.
With the situation being as it is, the company has turned to Chapter 11 bankruptcy to navigate through this situation. The filing allows the company to avoid liquidation and explore restructuring options. Chapter 11 grants time for the company to reorganize and propose a plan to repay creditors.
Still, the wide gap between assets and liabilities could pose challenges during the restructuring process. The petition is pending court approval, which will determine how proceedings move forward. Once approved, the later proceedings will look into how the company can turn its finances around. A plan will then be agreed upon to follow for the upcoming period.
Chapter 11 is often used by businesses to avoid liquidation while reorganizing finances under court supervision.
