New documents reveal Logan August has filed for chapter seven bankruptcy. The former Kern County Sheriff’s deputy and his partner, Derrick Penny, are accused of stealing 34 pounds of marijuana from a sheriff’s evidence locker. The former partners also face charges of money laundering and falsifying police reports.
The documents reveal August has more than $100,000 in debts, but he’s paid off his restitution, required under his federal conviction for conspiracy to possess with intent to distribute marijuana.
Prominent local bankruptcy Neil Schwartz explained what August’s decision could mean.
“Chapter 7 bankruptcy is when a consumer typically files to get rid of their debts, their unsecured debts, so it would be like credit cards or medical debts that have piled up on them,” Schwartz said.
Specifically, August owes $102,499 in unsecured debts, according to the documents. His debts include $35,000 to Wells Fargo, more than 20,000 to Capitol One, more than $2,000 to Bank of America, and $35,000 to a man listed only as TJ Whittaker.
“Really he’s going to be in trouble financially once he gets back on his feet,” Schwartz added.
The documents reveal August sold his four bedroom, 2600 square foot home, for $389,000 dollars, but if there’s any good news for him, the property sale helped him pay off his restitution in full, with $16,200 going to the Marshall’s Service. Meantime, the documents show August continues to earn $7,000 per month from his personal training business.
Schwartz said August’s decision to file for bankruptcy could lead to a better road ahead.
“He won’t be paying back any of it if his bankruptcy goes well, which should be discharged six months after it’s filed. His debts would be discharged that means he’s relieved of any obligation to pay them.”
Schwartz went on to say that, even if August is discharged of his debts, his credit score likely will decrease significantly, which could mean getting a loan would be much more difficult.
August is next expected in bankruptcy court on February 19th to review his assets, and in criminal court in April.