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Fiancé of former governor files Chapter 13

The woman who was known as the first lady of another state at one time has filed for Chapter 13 bankruptcy protection. This action will allow her to create a repayment plan to pay back her creditors over three to five years. The exact amount of her repayment plan, as well as how long she will have to pay it, will depend to some extent, on how much money she has made of late.

The reason this story attracted national media attention, including the attention of a Kentucky media outlet, is that the women was embroiled in a scandal. That scandal led to the resignation of her partner, the governor of another state.

The allegations pertained to what has been described as "influence-peddling." However, it seems from reports that the woman owed a newspaper $125,000 for that paper's attorney fees. The paper and the woman had a dispute about whether the public, and thereby the paper, had a right to access certain government records.

The money she owes to the newspaper was not the only debt she listed in her paperwork. She listed almost 50 creditors altogether. She claimed between $100,000 and $500,000 in debt and indicated she owed between $100,000 and $500,000 in assets.

While her choice to file Chapter 13 bankruptcy is a personal one, it was probably discussed with an attorney. A Chapter 13 bankruptcy filing protects her real estate from getting sold. As a general rule, a Chapter 13 bankruptcy filing can also be a good way to dispose of a bill from a lawsuit, as was the case here.

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