This bankruptcy became a point of public scrutiny, especially in 2012 when he was appointed chair of the Senate Ways and Means (budget) Committee, and it has resurfaced in later campaigns (including his gubernatorial run). Critics have highlighted it as a liability for someone overseeing state finances.

Ty Masterson, a longtime Kansas Republican state senator (and current Senate President, running for governor), filed for Chapter 7 personal bankruptcy in late 2010 (some sources note it as 2011). This stemmed from the failure of his home-building/construction company, Masterbuilt Homes (or similar spelling variations like MasterBuilt Homes), which collapsed around 2006.

Key Details from Bankruptcy Records and Reporting

• Filing and Discharge: He filed Chapter 7 bankruptcy (liquidation) in federal court at the end of 2010. The case was closed on August 9, 2012, with most debts discharged and few creditors receiving payment.
• Debts vs. Assets: Court records showed approximately $300,000 in assets against about $1.13 million in total debts. Unsecured debts were listed at nearly $885,000.
• Major Creditors:
  • CornerBank (largest single creditor): ~$206,000–$209,000 in commercial loans.
  • Emprise Bank: ~$53,890 in commercial loans.
  • Over $160,000 in revolving credit card debt.
• Other Context: His legislative salary was noted in filings, with deductions for benefits. He had three limited liability corporations registered with the state at the time.

Background on the Business Failure

Masterbuilt Homes was a construction/home-building business that Masterson owned and operated (he has described himself as a home builder through the 1990s into 2008). It failed amid the broader housing market downturn around 2006–2008.

Masterson attributed the problems primarily to a former employee who mismanaged projects and made unauthorized charges. This led to financial troubles that he initially tried to resolve personally without bankruptcy. In a 2008 response to campaign criticism, he stated that attorneys had advised him to declare bankruptcy earlier, but he worked through payment plans with subcontractors and others out of a sense of personal responsibility (e.g., repaying a ~$33,000 bill to one vendor in installments).

By 2010, he proceeded with the Chapter 7 filing. Post-discharge, he reported continuing to work with some banks and vendors to repay debts voluntarily, even though not legally required.

Political Impact and Responses

This bankruptcy became a point of public scrutiny, especially in 2012 when he was appointed chair of the Senate Ways and Means (budget) Committee, and it has resurfaced in later campaigns (including his gubernatorial run). Critics have highlighted it as a liability for someone overseeing state finances.

Defenders and Masterson himself have framed it as a difficult business failure during a tough economic period (post-2008 housing crisis), with efforts made to mitigate harm to others where possible. He has continued in business (e.g., as a realtor/developer/contractor and involved with entities like Springboard, LLC, and GoCreate at Wichita State).

Sources for this information include contemporary reporting from the Associated Press, The Wichita Eagle (e.g., Ron Sylvester's article "Andover state senator files for bankruptcy"), The Topeka Capital-Journal, Wikipedia summaries citing those articles, and court record references in news coverage. No major additional bankruptcies or details on other businesses appear in public searches. For official court documents, one would need to search federal bankruptcy archives (e.g., via PACER).