It's Bankruptcy for Bill Jefferson (D-LA)

Former Rep. William Jefferson (D-LA), recently convicted on 11 counts of bribery and racketeering, has filed for Chapter 7 bankruptcy.

In his preliminary filing, William and Andrea Jefferson state liabilities in the range of $1 million to $10 million, against declared assets in the same broad range. Most of the debt would appear to be consumer-type debt: credit cards and car loans. Several New Orleans area banks are listed among the creditors. Another noteworthy creditor is the Congressional Federal Credit Union.

Absent from the creditors’ list are the IRS and the State of Louisiana.

A more detailed filing will be required in a few days. Jefferson will be represented in the matter by his daughter, Jalila Jefferson-Bullock.

It is interesting that Jefferson would file Chapter 7 bankruptcy. That Chapter is normally reserved for those who earn less than the median income of their state of residence, and is subject to a means test. In Chapter 7, all debts are normally discharged with no claim on future income, but the better-heeled are usually subject to Chapter 11 bankruptcy, which involves a court-mandated plan to repay as much of the debt as possible from future earnings. Jefferson’s Congressional pension of some $53,000 per year would be well above the median income in Louisiana; it will be interesting to see how the bankruptcy judge decides this matter.

H/T dennism via lucianne.com