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Olympic champion Gabby Giffords' mother in chapter 13 bankruptcy

While Gabby Douglas was competing on the world stage at the 2012 London Olympics, news broke that her mother had filed for bankruptcy protection earlier this year to find debt relief. Sources say that Douglas' mother is not the only parent of an Olympian to fall into financial distress. The day before news broke of the chapter 13 bankruptcy case filed by Douglas' mother, news broke that Ryan Lochte's parents are facing foreclosure on the family home.

Natalie Hawkins, mother of Gabby Douglas, filed for chapter 13 bankruptcy protection in January. Her petition in bankruptcy court reportedly listed roughly $80,000 in debts, the majority coming from a home mortgage. Hawkins is a single parent, after separating from her husband. Her bankruptcy case shows that she has only roughly $163,000 in assets, which mainly involves her townhome and a 2007 Nissan.

She sought a chapter 13 bankruptcy to reorganize her debts. The woman fell into financial distress after going on long-term medical disability in 2009. She had little to no income for roughly six months, while raising four kids as a single mother. She and her family currently lives on roughly $2,500 each month-money that primarily comes in the form of Social Security disability benefits and from child support, according to an Associated Press report in Sports Illustrated.

Sources say that Hawkins will pay roughly $400 each month in her chapter 13 bankruptcy payment plan to resolve her current debt issues.

Meanwhile, the Lochtes are reportedly facing foreclosure on their home. TMZ reports that the CitiMortgage has begun foreclosure proceedings against the Lochtes. Mrs. Lochte is apparently challenging the foreclosure in court under her home state's foreclosure laws, but the court has not yet ruled.

Citimortgage claims that the Lochtes stopped making payments on their home mortgage in February 2011. TMZ reports that CitiMortgage has indicated that if proceeds from the foreclosure sale fall short, the bank intends to seek a deficiency judgment for the remaining balance due, and fees on the home loan.

Sources:

  • Sports Illustrated, "Gymnast Gabby Douglas' mom filed for bankruptcy," Associated Press, Aug. 6, 2012
  • TMZ, "Ryan Lochte-Parents Swimming in Debt, Facing Foreclosure," Aug. 4, 2012

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