In Michigan or anywhere, bankruptcy is not an easy answer for everyone, but when debt becomes overwhelming, it can help people regain some financial freedom and potentially wipe out their past debts. Recently, the spouse of a former NASCAR driver filed for Chapter 7 bankruptcy protection. Thankfully, the action will mean that the pair will be able to remain in their home during the process.
The woman filed in U.S Bankruptcy Court earlier this month. Back in November, both the home and the 445-acres of property they owned landed in foreclosure after the couple failed to pay Carolina Farm Credit the $2.7 million they owed. The couple's home has two mortgages issued in July of 2006, both taken out from Carolina Farm Credit. Both the home and their property went on the auction block on April 30 but Carolina Farm Credit was the only company to make a bid on the property, bidding $1.725 million. However, the company may not be able to access the property due to the Chapter 7 filing.
Chapter 7 bankruptcy may come as a last resort for many, but when faced with the prospect of being unable to pay overwhelming debt, it can be a positive proceeding. Chapter 7 allows the debtor to turn over their non-exempt assets, allowing them to quickly be converted to cash so their creditors can be paid off. Most Chapter 7 cases reveal the debtor had relatively little or no assets so the process is normally over in a few months, allowing people to wipe out their debts and have a new financial beginning.
Source: Daily Reporter, "Wife of former NASCAR driver Jeremy Mayfield files for Chapter 7 bankruptcy; can stay in home," May 19, 2012