The Detroit News has reported that Ayanna Kilpatrick, the sister of former Mayor Kwame Kilpatrick and daughter of former Congresswoman Carolyn Cheeks Kilpatrick, has been unable to cover her monthly expenses, including her mortgage, delinquent taxes and bills, and has filed for Chapter 7 bankruptcy.
Ayanna Kilpatrick's assets include a home – known for a scene in which her brother pushed a court officer that tried to serve him a subpoena for his role in a 2008 scandal involving text messages – and rights to her brother's autobiography.
Total liabilities are listed at over $345,000 in the filing. Of that amount, delinquent federal taxes are owed at over $54,000.
In December 2011 Ayanna Kilpatrick's 3,500 square foot Detroit home faced foreclosure. Ayanna Kilpatrick owed over $133,000 on the home, which is located next door to her mother's home.
Ayanna Kilpatrick stated in the documents that she earns $2,000 a month as a self-employed consultant but that the business was dissolving. Her monthly expenses were listed as over $3,900.
In the bankruptcy Ayanna Kilpatrick listed no income from employment or from operating a business.
Reporters contacted Ayanna Kilpatrick but she hung up on them when asked for a comment.
The book deal she made with her brother's autobiography, giving her 50 percent of all sales, is not listed in the bankruptcy. The company name, Aktion Enterprises, that she created for the book launch, is also absent in the bankruptcy documents.
Reporters, that obtained e-mails from Kwame Kilpatrick, claim that he said that the book was a monetary failure. Kwame Kilpatrick has also claimed to be destitute, has borrowed money to pay restitution to the city and still owes $240,000 in loans. After the incident with the court officer, Kwame Kilpatrick was later forced to resign and accept a plea bargain.
Ayanna Kilpatrick's filing lists $54,142 owed to the IRS for 2006, 2007 and 2008 taxes; 8,100 to DTE energy; and $4,300 to Henry Ford Hospital.
In 2003 Ayanna Kilpatrick purchased her home for $250,000. Wayne County records show that she obtained a mortgage for $225,000. By 2004 she took out a second mortgage for $40,000. She now owes $209,000 to PNC Bank.
Remaining debts are from retail outlets that include $5,900 to Best Buy, $2,600 to Nordstrom, $838 to Pier One and $417 to Neiman Marcus.
A water contract, awarded by the Detroit Water and Sewerage Department accounts for another $1,500 in debt. The contract was given to Ayanna Kilpatrick during a time when she used her home to headquarter her brother's Kilpatrick Civic Fund – that was later found to be a civic fund charity that was used for personal and campaign funds.
The IRS records show that Ayanna Kilpatrick made $43,115 when she turned her home into a rental for the Kilpatrick Civic Fund.
The funds gained by the charity were also used to purchase travel, yoga, summer camp and anti-bugging equipment.
Contact a bankruptcy lawyer if you are considering a business or personal bankruptcy – and protect as many of your assets as possible!