Bankruptcy Looms For Eastern Oklahoma Town

MOFFETT, Okla. (AP) -- A small eastern Oklahoma town is filing for bankruptcy.<br/><br/>The town of Moffett is filing for Chapter 9 bankruptcy protection after trustees learned of large debts that the

Friday, February 2nd 2007, 12:34 pm

By: News On 6

MOFFETT, Okla. (AP) -- A small eastern Oklahoma town is filing for bankruptcy.

The town of Moffett is filing for Chapter 9 bankruptcy protection after trustees learned of large debts that the town attorney says were incurred by former Mayor Billy Yandell without the knowledge or approval of trustees.

Yandell died in December.

Papers filed in federal bankruptcy court in Okmulgee say Moffett has assets of just over $43,000 and debts of nearly $200,000, not including payroll.

New Mayor William Bentley says 85 percent of the town's budget came from traffic stops. But the town was declared a speed trap in December and police are no longer allowed to write traffic tickets.

If Moffett can't become solvent it could be forced to unincorporate.

Moffett has a population of 178 and is just across the Arkansas River from Fort Smith, Arkansas.