Judge Changes Dee Wyly Bankruptcy from Reorganization to Liquidation

U.S. Chief Bankruptcy Judge Barbara Houser has changed the case of 82-year-old Caroline “Dee” Wyly from a bankruptcy reorganization to a liquidation – a process that will allow a court-appointed trustee to physically take custody of all of Mrs. Wyly’s possessions and sell them off with the money going to the IRS.

A lawyer for Mrs. Wyly, who is the widow of Dallas entrepreneur Charles Wyly, came to tears during her plea Tuesday to Judge Houser that a neutral mediator be appointed to help them and their largest creditor, the IRS, reach a settlement agreement.