Several African-American churches have been hard hit by the recession. With congregants paying less in tithes, several have found themselves with major debts with local banks.
In early July the New Salem Missionary Baptist Church, located in Hyde Park at 405 N. Oregon Ave., filed for Chapter 11 Bankruptcy Protection just days before a local bank planned to ask for foreclosure judgment on their historic property.
The church has defaulted on a $1.1 million loan it took out in 2007 with Fifth Third Bank to buy 43 acres of land for a new sanctuary near Sligh Ave. and I-4.
The bank agreed to lower monthly payments when the church got in trouble, but the church has been unable to meet the obligations of the agreement.
Rufus Spencer, spokesperson for the church, with Dr. Henry J. Lyons as the Servant/Teacher, said they will be going back to court on September 19, 2012 for another hearing. The church is claiming $880,000 in assets and $1.2 million in liabilities.
He told the Sentinel that “the Deacons Ministry has decided not to make any comment on the matter until after we appear in court. Our main concern now is to get past this court date.”






