Summit 1031 exchange, based in Bend, Oregon filed for bankruptcy protection late last year after it acknowledge that it could not meet client commitments. In filing for the bankruptcy protection, Summit clients were left without their funds, but with the tax consequences associated with those funds. When it closed, Summit had only about $13 million of the $27 million is cash it owed to its clients. Summit is one of several 1031 exchanges collapses in the past year. As was the case in other prominent 1031 exchanges, clients reportedly believed that their funds were deposited in secured accounts and thus were not at risk of being lost.