Former Mayor's Sister Files Bankruptcy

Ayanna Kilpatrick, the sister of Detroit's former Mayor Kwame Kilpatrick has filed for Chapter 7 bankruptcy protection. Some of her creditors included Nordstrom, Macy's, Discover and DTE Energy. She owed more than $345,000 to various creditors and over $54,000 in taxes according to the U.S. District Court records.

In Ayanna's bankruptcy petition she only listed two assets: $877 in personal property (e.g. clothing, jewelry, household goods etc.) and her 3,552 square foot Detroit home, built in 1916. This is the same house that was headlined in 2008 when Mayor Kwame Kilpatrick was accused of shoving a member of law enforcement who came to the house with a subpoena during the text message scandal.

Ayanna's bankruptcy filing earlier this month stated that she is a self-employed consultant who earns $2,000 a month, and it stated that she is in financial distress. "Business is dissolving and I owe over $50,000 in back taxes, which is being negotiated currently," Ayanna wrote in the petition which she filed without an attorney.

Ms. Kilpatrick is handling her Brother Kwame Kilpatrick's autobiography; however, she did not include the book or its sales in her bankruptcy filing. According to court orders, the proceeds from the mayor's autobiography are to be placed in an escrow account in order to pay off a fine from his plea deal in the text message and perjury scandal.

In recent years, millions of Americans all across the U.S. have sought out bankruptcy protection, even known celebrities and large corporations. At the Law Offices of Marshall D. Schultz, a Detroit bankruptcy attorney from our firm can provide you with excellent legal representation and bankruptcy services. With over 33 years experience in the field of bankruptcy law, we are confident that we can help you find the most reasonable and cost-effective solution to your financial troubles.

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