Chapter 7 bankruptcy involves the sale of a debtor’s assets to creditors.

“We just had serious financial economic and business reversals over the past 12 months or so,” Larry Owen said. “The advice I got was this was the best course of action to take and so we did.”

Larry Owen attributed the couple’s financial troubles to failed real estate investments “that were substantial and weren’t able to survive.” He claimed full responsibility for their financial situation.

“Other than being my spouse, (my wife) doesn’t have anything to do with it,” Larry Owen said.

Larry Owen said he would be speaking for the couple about financial matters.

According to the December bankruptcy filings, the Owens owe $63,556 in 2008 income taxes to the Internal Revenue Service and about $32,000 in income taxes from 2007 and 2008 to the Michigan Department of Treasury. Officials from the IRS and the Michigan Department of Treasury said they cannot legally discuss whether those taxes have been paid since the December bankruptcy filing.

Also, the Owens’ $1.04 million home in Bath Township went into foreclosure and was purchased Nov. 18 by BAC Home Loan Servicing for $594,000, said Sandy Hamlin, assistant register of deeds for Clinton County. The Owens have until mid-May to redeem the property, but each day that passes adds another $100 to the $594,000 price tag, Hamlin said.

The Owens took out a $646,767 mortgage on the house in July 2003 but were then late on their property taxes to Bath Township four times in the next three years, totaling $31,598. Each set of late taxes was paid in full in December 2007, and the couple has no delinquent taxes to Bath Township or Clinton County. The Owens’ current address is an East Lansing listing.

Larry Owen’s $278,425 pension from Miller Canfield, an international law firm for whom he worked until 1998, is filed as exempt, along with nearly $30,000 in other assets.

The couple lists its average monthly income at $7,956 and average monthly expenses at $7,930, although they currently earn $7,335 per month, according to bankruptcy filing documents.

The Owens have outstanding taxes of $5,808 to Bath Township and must pay them by Feb. 16, at which point the taxes will be turned over to Clinton County and incur interest.

Larry Owen said he didn’t think the couple’s financial situation would have a negative impact on the Board of Trustees.

“Of course it’s embarrassing,” Larry Owen said. “Anybody who looks at her performance and contributions to the board would recognize how contributive she is. And that won’t change.”