Preston Parsons, a former fourth-string quarterback for the Denver Broncos has filed for bankruptcy on an 18,000-square-foot home in Cherry Hills Village, Colo., the Denver Post reported. But the bank he owes $5.4 million to wants the chapter 11 case dismissed. It claims that he only filed for bankruptcy Aug. 16 to stop a foreclosure sale of the mansion Aug. 17. Parsons’ bankruptcy filing claims the house is worth $9.5 million. Redfin and Zillow estimate its value at $8.4 million and $8.1 million, respectively. Parsons filed for bankruptcy on the house through a new LLC, Press on Holdings. He lists only one creditor: InBank, which loaned him $4.3 million in 2019 and hasn’t been repaid. Parsons used the house, which he bought for $5.1 million in 2017, as collateral for the loan. In April, InBank sued Parsons and his wife as a result. It claims they also haven’t paid insurance premiums or property taxes for several years and asked an Arapahoe County judge to permit a sale of the mansion. On June 8, Judge Peter Michaelson did so. A foreclosure sale was scheduled for Aug. 17. Two days before, Parsons created Press on Holdings and moved the mansion’s deed from a trust to the LLC, InBank claims. On Aug. 16, Press on Holdings filed for bankruptcy and the foreclosure sale was canceled.
