Gabby Douglas is not the only Olympian to be touched by financial difficulties. American swimmer and gold-medalist, Ryan Lochte, is making headlines for happenings outside of the pool.

Reportedly, the Olympian’s parents are facing foreclosure on their Florida home. The lawsuit filed against the pair in May shows the bank seeking to regain $250,000. The couple divorced a year ago after several years of marriage. The divorce could very possibly contribute to their current financial situations, although details were not reported.

While the pair appeared at the London games to cheer on their son, the thought of the foreclosure actions likely weighed heavily on their minds. According to court records, Mrs. Lochte requested the court dismiss the case.

Florida residents in similar situations would do well to remain cognizant of the fact that filing either a Chapter 7 bankruptcy or a Chapter 13 bankruptcy will enact the automatic stay provision of the U.S. Bankruptcy Code. Simply put, filing for bankruptcy can halt home foreclosure actions.

An emergency bankruptcy petition may enable an individual to catch up on their mortgage payments to keep their property. However, bankruptcy can do so much more than successfully halt foreclosure proceedings. Depending on the circumstances and the chapter the filer chooses, bankruptcy can provide either relief from certain debts or the chance to restructure said debts in a manageable way.

Beyond the numbers, bankruptcy is a chance to obtain a fresh start. Florida residents struggling with personal debt can stop being afraid to pick up the phone or peer into the mailbox. Regaining financial stability for many Florida residents may begin with filing for bankruptcy.

Source: Huffington Post, “Ryan Lochte’s Parents Face Foreclosure In Florida,” Associated Press, Aug. 4, 2012