On behalf of Law Offices of Mark M. Kratter, LLC on August 15, 2012
Connecticut residents who have been watching the Olympics probably know of Gabby Douglas, the U.S. gymnast who won the all-around gold medal this year. While this Olympic story is certainly worth the positive media attention, her personal life is also making headlines for a completely different reason. Douglas' mother filed for personal bankruptcy earlier in the year. She sought Chapter 13 bankruptcy protection. 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.
She listed assets of $163,706, which include a townhome and a vehicle -- items that make up the majority of that figure. Her debt is listed at approximately $80,000. The majority of that debt comes 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.
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 virtually 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.
Sometimes situations in life do not go as anticipated, and financial problems can quickly become debilitating. When an individual is no longer able to cover his or her debt load, it may be time to consider filing for bankruptcy. Chapter 13 will allow Douglas' mother to keep her important assets and allow her to have an organized way to repay her debts. Taking care of four children can be expensive, especially for a single parent. Filing for bankruptcy in a situation like this could help Connecticut parents regain the confidence to manage their finances and start over.
Source: Boston.com, "Gymnast Gabby Douglas' mom filed for bankruptcy," Aug. 6, 2012
