Christine Beatty sheds debt in bankruptcy, but still owes city of Detroit thousands

(WXYZ) - Former Kwame Kilpatrick Chief of Staff and ex-mistress Christine Beatty gets to wipe out a lot of debt after a Georgia judge grants her bankruptcy.

However, she's not off the hook with the city of Detroit.  She still owes the city $83,316.80 and must pay it back.

When she moved to Georgia in 2010 Beatty managed to keep a low profile but she could not escape the debt that followed her, until now. 

A Georgia judge is erasing nearly $400,000 in debt.  She filed bankruptcy in October. 

Her criminal attorney Jeff Morganroth spoke with 7 Action News by phone and said she had no choice but to file bankruptcy.

"She had long term debts and recurring expenses and her income had decreased significantly and she was in a position where she had no other option," said Morganroth.

Bankruptcy records show she has made roughly $34,00 this year - a big difference from the past two years.  Her attorney says that in the past 6 to 8 months her consulting jobs have dried up. 

Her current restitution payments to the city of Detroit are $500 a month and she'll continue to pay them.

Under chapter 7 bankruptcy rules, criminal restitution payments are not allowed to be discharged.

"That is one of her highest priorities and she is continuing to satisfy all of her obligations in that respect," said Morganroth.

Beatty served jail time as a result of a sex scandal with former Detroit Mayor Kilpatrick after they lied about their affair in court. 

Bankruptcy papers indicate she owes the IRS $60,000, has a mortgage of around $220,000 and medical bills she can't pay. 

She lists her only assets as household goods, clothing, jewelry, a Ford Explorer she still owes money on, and a checking account with a zero balance.

"It's definitely an unfortunate situation but that's what the bankruptcy rules are there for and the laws," said Morganroth.  "And she hasn't done anything wrong by availing herself of those rights."

Even though she hasn't asked for a lower restitution payment yet, that's not completely out of the question.

Her attorney says there may be some potential to ask for adjustments to the payment, but she's not going that route right now.

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