Natalie Hawkins Off The Hook For Massive Debts After Four-Year Battle Olympic Gold Medalist Gabby Douglas’s mom can breathe a little easier after a federal court judge discharged her debts in her bankruptcy. Natalie Hawkins – Gabby’s mom – filed for Chapter 13 bankruptcy back in 2012, just a few months before her daughter won two gold medals in the Summer Olympics. According to the bankruptcy petition, Hawkins claimed she had assets totaling $163,706.10 and liabilities in the amount of $79,754.14. She owed $4,350.23 on a student loan, $1,534 to Capital One, $158.78 and more than $72,000 on the mortgage to her Virginia Beach, VA home. Hawkins filed for bankruptcy to have the federal court judge sign off on a re-payment plan to help make her debt manageable. The court eventually approved a payment schedule where Hawkins would make eight monthly payments starting in February of $400, then make one lump payment of $5,817 in October 2012 then 49 monthly payments of $400 for a grand total of $28,617 paid by Hawkins back to her creditors. Then shortly after the plan was approved, PNC Bank – the owner of Hawkins mortgage loan – accused her of defaulting on the post-petition payments she was to make. They demanded the court allow them to foreclose on her property because she missed three monthly payments of $734.02 for a total arrears amount of $2,202.06. But the judge went easy on Hawkins, and ordered her to continue making her monthly payments to the bank and also pay back her arrears. The order did not allow the bank to foreclose on her home as long as Hawkins made her payments. The bankruptcy has been pending for over a year with Hawkins continuing to make her scheduled monthly payments to her creditors. Hawkins spoke to the press following the story of her bankruptcy hitting the media and stated, “It’s my story, it’s part of me. I’m not even embarrassed about it… (and), “It shows that even though I didn’t like to have to do it, I’m glad there was something there for me to be able to protect my home.” Hawkins case dragged on for over 4 years with the trustee attempting to pay off her creditors and with Gabby’s mom making payments to those owed money per a court approved payment plan. Then on December 25th, the federal court judge came back and discharged Gabby’s mom’s debt. The discharge will give Hawkins a fresh start with her finances, with the majority of her debt being wiped clean by the judge.
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Exclusive: Judge Discharges Olympian Gabby Douglas’ Mom’s Debt In Years Long Bankruptcy
