One spouse’s Chapter 7 bankruptcy allows couple to stay in home
On behalf of Ellett Law Offices , P.C. posted in 1. Chapter 7 on Thursday, June 7, 2012
When someone is dealing with the difficulty of growing debt, the last thing they want to think about is potentially losing their home. Unfortunately, for many individuals in Arizona, that’s just the headache they may be facing. Debt can often get out of hand quickly and unexpectedly, and before many people realize they are dealing with more than they can handle.
Many of these people, though, may find assistance in bankruptcy protection, such as Chapter 7, in resolving their debt and perhaps even in staying in their homes.
One notable case of such a filing is that of Shana Mayfield, the wife of former-NASCAR racer Jeremy Mayfield. In November, the couple’s 445-acre property was foreclosed upon when they failed to make payments on two outstanding mortgages from Carolina Farm Credit, valued around $2.7 million. Each had taken out separate mortgages on the property.
The home and property were auctioned off in April, with Carolina Farm Credit being the only bidder. In early May, Shana Mayfield filed for Chapter 7 bankruptcy, which is prohibiting Carolina Farm Credit from accessing the property. At the same time it is allowing the couple to stay in the home.
It is not clear what will happen to Carolina Farm Credit’s $1.725 million bid on the property as the Chapter 7 bankruptcy process continues. One source familiar with the process says it could take as long as two years for the case to come to settlement.
Growing debt can be difficult to deal with when it gets so large as to trigger foreclosure, but many individuals in Arizona and nationwide may find relief through bankruptcy as a means of getting back on the track and heading for a checkered flag.
Source: Hickory Daily Reporter, “Jeremy Mayfield’s wife files for bankruptcy,” Sarah Newell Williamson, May 19, 2012
Tags: Chapter 7, bankruptcy