Waiehu Aina LLC, a company that purchased more than 250 acres of undeveloped Maui land with the intention of selling farm lots, has filed for bankruptcy.

The Wailuku-based company managed by David and Donalee Singer petitioned for a Chapter 7 bankruptcy this week to stave off a foreclosure auction, said Joseph Toma, Waiehu Aina's bankruptcy attorney.

The filing listed $4 million in assets and $1.6 million in liabilities. But Toma said the filing will be updated with amounts owed unsecured creditors once the list is compiled.

He said Waiehu Aina felt the foreclosure auction might have produced a sale at a depreciated price. There is a chance the mortgage and unsecured creditors could be fully paid off through the bankruptcy proceedings, Toma said.