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Local Law Firms Home > Bankruptcy & Foreclosure News > Casey Anthony Seeks Refuge in Bankruptcy Law

Casey Anthony Seeks Legal and Financial Refuge in Bankruptcy Law

Casey Anthony is looking to get rid of her remaining legal and financial woes by seeking protection under bankruptcy law. Anthony was acquitted on charges of killing her own 2-year-old daughter in 2011, but the high-profile trial has left her with nearly $800,000 in debt, in addition to several civil lawsuits.

She has filed for Chapter 7 protection in the U.S. Bankruptcy Court for the Middle District of Florida, which is located in Tampa. The court filings say she has $792,119 in debt, with no income and only $1,084 in assets to cover the debt.
The bulk of the debt is on account of $500,000 in legal fees charged by her criminal defense attorney during the murder trial. The IRS is seeking to recover $68,540 in unpaid taxes, penalties and interest. The rest is mostly for court costs and investigation costs charged by the Orange County Sheriff’s Office.

The bankruptcy filing was made on the same day that the Fifth District Court of Appeal in Florida overturned two out of four convictions for lying in court during the murder trial. Anthony was sentenced to a 4-year jail term for the convictions, but was released after 10 days because of time already served before the trial.

Her lawyer says the bankruptcy petition was filed in Tampa instead of Orlando to avoid the media hype. However, one of the three plaintiffs that have filed civil lawsuits against Anthony does not agree.

Zenaida Fernandez-Gonzalez, who is suing Casey for defamation, claims the bankruptcy petition is just a ruse to postpone her civil case.  Gonzalez wants the bankruptcy case moved to Orlando. Anthony had claimed that she had last seen her daughter Caylee at Gonzalez’s apartment.

The bankruptcy court has set an initial hearing date for Feb 26, 2013. Meanwhile, her creditors been called for a meeting in Tampa on March 4, 2013.


Did you know?
An automatic stay on all creditor actions goes into effect under bankruptcy law when a petition is filed.
As per the U.S. bankruptcy code (section 362), the automatic stay comes into force at the same time that the bankruptcy petition is filed. Creditor actions and other non-related civil lawsuits cannot be pursued until the bankruptcy proceedings have been completed.



 
 
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