Jim DeWalt, president and CEO of Spokane-based Associated Industries of the Inland Northwest, and his wife, Ruth, have filed for Chapter 7 liquidation in U.S. Bankruptcy Court here, listing total assets of about $2.6 million and debts of $4.2 million, which they say are related to their own real estate investments.

The indebtedness includes secured claims involving eight Chicago-area real estate properties, all of which are valued at significantly less than the amounts owed on them, the filing shows.

DeWalt says the bankruptcy filing is the result of Chicago's collapsed real estate market and is unrelated to his work with Associated Industries.

"It's a private business investment," he says. "My stepson is a real estate broker in the Chicago area. I acted on his advice, and it's a disaster."

The filing lists Jim DeWalt as having an investment business, Cornerstone Equity Group Inc., which has the same address as the couple's home here, and which the bankruptcy filing says has zero value.

DeWalt says he plans to surrender the Illinois properties, which the filing shows are valued at a combined $2.1 million, while claims against them total $4 million owed to lenders based in Florida, Iowa, California, Michigan, and Nebraska.

The filing also shows the DeWalts have claims against the full $220,000 value of their Spokane residence, including $100,000 owed to Spokane-based Sterling Savings Bank, and $120,000 owed to Troy, Mich.-based Flagstar Bank. Other secured debts include $16,800 owed to Spokane Teacher's Credit Union.

The filing shows about $22,300 of the indebtedness is to creditors holding unsecured nonpriority claims, including three credit-cards with a combined balance of $14,300, and a $7,000 loan issued by Associated Industries against his 401(k) retirement plan.

DeWalt has been CEO of Associated Industries since 2004. The nonprofit employers group provides human-resource-related services to about 450 member companies.