Ohio residents who have been watching the Olympics probably know of Gabby Douglas, as she won the women’s gymnastics all-around gold medal this year. While this Olympic story is certainly wonderful, her mother’s personal life is also making headlines for a completely different reason. Douglas’ mother filed for personal bankruptcy earlier in the year. She sought bankruptcy protection by filing a Chapter 13 petition with the bankruptcy court. The media attention focused on this fact has not appeared to fluster the
proud mom, and may serve to educate others that filing for bankruptcy is often a sound financial decision that can allow an individual the chance to pay off debts and get back on track.
The Long Fight
She listed assets of $163,706, which include her home and a vehicle — items that make up the majority of that
figure. Her debt is listed at approximately $80,000, mostly from her mortgage. She earns approximately $2,500 a month in income, money that comes from child support and disability benefits. She has been on a long-term medical disability since 2009.
One common misconstrued fact is that a party will lose their home if they file bankruptcy. This is not true. Usually filing for bankruptcy can mean an automatic stay of foreclosure, and discharging your debts will give you the money to pay off your mortgage. Especially in a Chapter 13 plan.
The Olympic mom has stated that filing for bankruptcy will allow her to continue to live in such a way that allows her to pay what she owes and still keep her home and vehicle. Douglas’ mother has four children and for almost half of one year, the single mother had nearly no income. She not only had to pay for her home, but also take care of her other children and pay costs associated with her daughter’s gymnastics training. The court-approved payment plan will require her to make payments of $400 per month over a period of almost five years.
It’s Not All Fun and Games
Sometimes things in life don’t go as planned. When is it time to consider filing for bankruptcy? Consider contacting an experienced bankruptcy attorney, like Chris Wesner Law Office, with offices located in Dayton, Springfield, Xenia, Troy, and Piqua Ohio. We offer a free initial consultation. Taking care of children can be expensive, especially for a single parent. Filing for bankruptcy in a situation like this could help Ohio parents regain the confidence to manage their finances and start over. Contact us today.
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