Phoenix debtors find relief; keep homes in Chapter 13 bankruptcy
On behalf of Ellett Law Offices , P.C. posted in 1. Chapter 13 on Monday, August 20, 2012
With the latest summer Olympics wrapped up, the eyes of Phoenix sports fans are on our athletes as they return home with victories and medals to prove it. As celebrity status goes, though, this attention can draw out the sometimes more embarrassing aspects of an Olympic athlete’s personal life. For superstar gymnast Gabby Douglas, this attention has been brought to her mother’s Chapter 13 bankruptcy filing.
The filing was made in the beginning of 2012, listing Douglas’ mother’s assets at just over $160,000 – made up mostly of the family’s home and car. She held nearly $80,000 in overall debts and was in need of a way to begin to repay this while still maintaining daily life for herself and her four children. The Chapter 13 bankruptcy filing is allowing her to do so, with monthly payments of $400 toward her debts over the next five years.
Douglas’ mother suffered a long-term medical disability in 2009, and like many in similar cases, found herself with a limited income. In fact, there was a six month period where the family took in little to no income. The income she does receive consists of child support payments from her former husband, as well as Social Security disability benefits. When attempting to support four children, one of which is pursuing a dream that comes with training costs, it can be understandably difficult to stay on top of debt payments for things such as home mortgages.
Chapter 13 bankruptcy is designed in a way that allows filers to reorganize their debt and form a feasible repayment plan that will span several years. For Douglas’ mother, it allows her to keep her car and home for her family and may also provide time for her to seek additional income to keep herself debt free after emerging from bankruptcy. Douglas’ mother says she isn’t ashamed of her bankruptcy and is glad there is a way she can protect and provide for her family. For Phoenix households in similar situations, a bankruptcy filing could bring the same sort of relief to debt and financial struggles.
Source: ESPN, “Bankruptcy for Gabby Douglas’ mom,” The Associated Press, Aug 5, 2012
Issues discussed in this post are of the type handled by our firm. Readers can learn more by visiting our Maricopa County Chapter 13 debt relief page.
Tags: Chapter 13, bankruptcy, bankruptcy protection, debt relief