After a federal judgment didn't go as planned, Patricia Kluge has decided to file for Chapter 7 bankruptcy along with her husband.

After negotiations with their three banks were unsuccessful, Kluge and William Moses filed their paperwork. With Bank of America alone, Kruge reportedly owes 23.9 million alone, contributing significantly to her need to file for Chapter 7 bankruptcy. Kluge and Moses have separate lawyers, who filed separately this month in an U.S. bankruptcy court.

According to senior partner Michie Hamlett, Chapter 7 bankruptcy is "an opportunity for someone who is in debt and not able to handle their debts to get a fresh start." Jointly, Kruge and Moses owe $50 million, listing as many as 50 creditors in their paperwork. The meeting of creditors has been scheduled for July 15, to be held at the federal courthouse in Charlottesville. This meeting will be the first of many to resolve the Chapter 7 bankruptcy case.

Planning to move forward with Chapter 7?  Get help bycontacting our firm and working with a Houston bankruptcy lawyer.