When it comes to gymnasts competing in this year’s Olympics, 16-year-old Gabby Douglas has quickly become a fan favorite. The teen has already won two gold medals and is the first Africa-American woman to take home the title of winning an all-around gold in gymnastics. And while she could end up earning millions in endorsement deals, the fact that her mother filed for Chapter 13 bankruptcy several months ago highlights the fact that times can be tough for anyone –even for the parent of a gold medal winning Olympic athlete.
According to sources, in January Douglas’ mom filed for Chapter 13 bankruptcy as a way to reorganize her debts while still being able to pay back what she owed to creditors and keep a roof over her head.
“It’s my story, it’s part of me. I’m not even embarrassed about it,” her mother said. “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.”
According to the Chapter 13 bankruptcy filing, the single mother of four was roughly $80,000 in debt with close to $164,000 in assets. The majority of the debt was attributed to her mortgage.
In terms of income, in the filing she lists $2,500 a month, which is coming from child support payments and Social Security disability benefits.
As part of her Chapter 13 bankruptcy, Douglas’ mother is paying $400 a month toward her debts over the next roughly five years.
The story of Douglas’ mom came out the day before the news broke that the parents of another Olympic athlete — Ryan Lochte — were also facing foreclosure on their Florida home.
Source: The Associated Press, “Gymnast Gabby Douglas’ mom filed for bankruptcy,” Aug. 6, 2012