A Rockland County accountant has filed for bankruptcy protection, citing circumstances from the Covid-19 pandemic.
Patrick F. Monaghan, III and codebtor Patrick F. Monaghan III CPA P.C., of Nanuet, declared nearly $1.5 million in assets and $937,341 in liabilities, in a Chapter 11 petition filed on Oct. 23 in U.S. Bankruptcy Court, White Plains.
“The debtor’s business was decimated by Covid,” Monaghan states in an affidavit, “and the debtor incurred significant liabilities which he personally guaranteed.”
Monaghan was licensed as a certified public accountant in 1986 and began his career with the prestigious international firm, Price Waterhouse & Co. He started his own firm in 2002, based at his home in New City.
Monaghan specializes in serving nonprofit organizations, and several clients have vouched for his skills at saving millions of dollars and identifying new sources of revenue, in testimonials posted on his website.
But business revenue has declined sharply over the past few years. In 2023, Monaghan made $129,685 in business income, according to a bankruptcy record. Last year, he made $5,295, and so far this year $3,650.
He has very little personal property but more than $1.4 million – in retirement funds, a pension, and a checking account– most of which he claims as exempt from creditors. Last month, he sold his house in New City for $900,000, and he paid off two mortgages, and past-due federal taxes.
He still owes $579,325 to the U.S. Small Business Administration for a Covid era business loan. He owes $358,015 to nine banks and financial services companies for credit card charges and lines of credit.
Monaghan estimated current monthly income of $12,673, based on business income, unemployment compensation and disability insurance. He estimated expenses of $9,800, leaving a monthly balance of $2,873.
His debts are primarily business related, Monaghan states in the affidavit, and he filed for bankruptcy protection to efficiently reorganize the debts.
