UNEXPECTED Kris and Falen Vaughn bankruptcy details EXCLUSIVE
Unexpected grandparents Kris and Falen Vaughn had a difficult 14-month stretch between 2015 and 2017 that included a bankruptcy, a divorce, and a foreclosure.
As Starcasm previously reported, Falen Vaughn filed for divorce from her husband Kris Vaughn in April of 2016. The divorce filing states “complete and irreconcilable incompatibility” as the reason for the divorce, but it seems likely that finances may have been a major issue.
KRIS AND FALEN VAUGHN BANKRUPTCY DETAILS
Five moths prior to Falen’s divorce filing, Kris and Falen filed for Chapter 7 bankruptcy. Chapter 7 bankruptcy is known as a “liquidation bankruptcy” providing a fresh start to debtors by erasing most unsecured debts.
According to the filing, Kris and Falen had assets and personal property valued at $144,325.00. That included their home, which was valued at $120,000 with the couple still owing $105,000.
The couple’s liabilities totaled just over $275,000. That amount includes what they owed on their house, plus $18,600 in taxes and $136,829 in unsecured nonprioty claims.
According to the petition, Kris and Falen had $25 cash on hand and a checking account with $25 in it.
The couple owned 29 firearms, including 4 pistols, 10 shotguns, and 15 rifles. They also “owned” a Can Am 4 wheeler valued at $11,000 that they owed $15,000 on. The couple indicated they were paying $319 a month on the 4 wheeler.
KRIS AND FALEN VAUGHN ITEMS REPOSSESSED
A huge portion of Kris and Falen Vaughn’s debts were for items they were no longer in possession of.
In the list of creditors holding unsecured nonpriority debts, the couple listed four items they owed a total of $126,000 on. Those items were:
2011 Lowe pontoon boat ($21,000)
2004 32-foot camper ($14,000)
2014 Chevy 1-ton pickup ($44,000)
2014 Chevy 1/2 ton pickup ($47,000)
Under the section of the Chapter 7 petition for “Repossessions, foreclosures and returns,” the Vaughns listed the value of the four items they owed as $95,000 total:
All four items were repossessed or returned in 2015. The pontoon boat and the camper were in May, and the two trucks were on June 20.
The Vaughns also stated they owned a 2004 Chevy Tahoe valued at $5,500. There was no indication they owed any money on the Tahoe.
Kris and Falen claimed the house and the 4-wheeler as exempt and opted to reaffirm the debt (continue to owe) on both.
The couple’s bankruptcy was approved. The debtors were discharged on March 16, 2016 and the final decree was entered on April 7, 2016. That was one day after Falen Vaughn filed for divorce.
Kris received the house in the divorce, which was finalized in July of 2016. According to a later foreclosure filing, that is the same month the mortgage payments stopped being paid on the house.
The foreclosure went through and the property was sold at public auction in October of 2017.
Kris and Falen would eventually remarry in October of 2021.
Asa Hawks is a writer and editor for Starcasm. You can contact Asa via Twitter, Facebook, or email at starcasmtips(at)yahoo.com
