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New filing in bankruptcy court could lead to permanent closure of Turkey Leg Hut, legal expert says

On Monday, a court-appointed trustee filed a motion in the ongoing bankruptcy case that could permanently shut down Turkey Leg Hut.

HOUSTON — There has been yet another new development in the ongoing Turkey Leg Hut saga.

On Friday, the Houston Health Department announced it had shut down the restaurant due to nearly three dozen violations.

RELATED: Health department shuts down Turkey Leg Hut due to 'serious health code violations'

On Monday, a court-appointed trustee filed a motion in an ongoing bankruptcy case that could permanently shut down the restaurant.

The health department said there were 35 violations, some of which were an "imminent threat to public health." When KHOU 11 News reached out to the health department on Monday, we didn't get an update on whether or not inspectors went back out to the restaurant. Turkey Leg Hut is usually closed on Mondays, so there was no activity at the restaurant.

In the Chapter 11 bankruptcy petition filed by owner Nakia Holmes, she estimates the business' assets were valued at about $50,000. The filing was made in March with hopes that the business could continue under the management of a trustee.

RELATED: Turkey Leg Hut files for Chapter 11 bankruptcy, owing nearly $5 million in debt, court records show

But, due to the health code violations and other issues, the court-appointed trustee filed a motion to change proceedings to a Chapter 7 bankruptcy, which would liquidate the business.

KHOU 11 legal expert Carmen Roe said there's a possibility the judge agrees with the new filing.

"I think this business is probably going to see the end of its days. As of this filing, it's unlikely the judge would not grant it given the allegations that are being set out in this request," Roe said.

One big issue is concerns over the restaurant's pit room where all the turkey legs are smoked and "without it, the restaurant cannot operate," according to the filing.

A Chapter 7 filing means the business is shut down and all of its assets are sold off to pay creditors.

According to Roe, bankruptcy court judges typically follow the advice of the trustee they appoint. The parties have 21 days to respond to Monday's filing and the judge can issue a ruling after that.

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