Rep. Jefferson and wife file for Chapter 7

NEW ORLEANS, Sept. 1 (UPI) -- Former U.S. Rep. William Jefferson, who faces a prison term and forfeiture of almost $500,000, and his wife have filed for bankruptcy in Louisiana.

In papers filed last week in U.S. Bankruptcy Court, Jefferson said the couple's debts are between $1 million and $10 million, the New Orleans Times-Picayune reported. He reported the same range of assets.

Jefferson filed for Chapter 7 protection, which means the couple's assets would be sold to satisfy their creditors. Some assets are exempt. The filing was handled by Jalila Jefferson-Bullock, the couple's daughter, who is a lawyer.

In court papers, the Jeffersons listed specific creditors, including holders of car loans, their mortgage and credit card companies. Robert Trout, Jefferson's defense lawyer at his federal trial in Alexandria, Va., was also listed.

The couple described their debt as mainly "consumer," meaning obligations incurred as household expenses.