The Republian Sleaze Machine White Trash Convoy Continues: Kathleen Willey 700,000 in debt, declares banckrupcy

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Willey files for bankruptcy / Listed legal fees, other debts at more than $700,000

BY BILL McKELWAY Times-Dispatch Staff Writer

Kathleen Willey, whose alleged encounter with President Clinton more than six years ago helped fuel calls for his impeachment, is hundreds of thousands of dollars in debt and likely will be declared insolvent, a federal bankruptcy court official said yesterday.

"It's my impression at this time that we'll be in a no-asset bankruptcy case," U.S. Bankruptcy Trustee J. Stephen Bus said yesterday at a meeting of creditors in Richmond.

A formal declaration that Willey has no assets would mean that hundreds of thousands of dollars in legal fees, judgments and loans would go unpaid, including almost $200,000 lent to her by her two adult children, according to court records.

Willey, who remarried last year and whose formal name is Kathleen Schwicker, voluntarily filed for protection under Chapter 7 federal bankruptcy laws last month, listing debts of more than $700,000 and assets of $19,011.

In court filings, she listed household furnishings, a 3-year-old car and a wedding ring as making up the bulk of her assets.

Principal creditors, in addition to her children, are Richmond business partners A.V. Lanasa and Josie Abbott and Chesterfield County lawyer Daniel A. Gecker, who represented Willey throughout independent counsel Kenneth Starr's long investigation of the president.

Bankruptcy records show that Willey owes $187,000 to Gecker and $274,495 to Lanasa and Abbott, a debt that derived from a note Willey signed just days before her former husband's suicide in 1993.

Willey also owes almost $20,000 to Virginia Commonwealth University's Medical College of Virginia Hospitals for surgery procedures and a total of about $5,600 to Hecht's and a Cary Street Road boutique.

Willey, after swearing in a soft voice to tell the truth, answered routine questions at yesterday's creditors' meeting, which none of her creditors attended.

"I didn't know anything about it," said Abbott, reached after the meeting.

Joseph Kaestner, Abbott's former lawyer, said he notified Abbott and Lanasa, her brother, about the matter.

Months ago, Abbott and her brother dropped a long-running court effort to recoup the money owed them, alleging that a foreclosure procedure on Willey's former home fraudulently disposed of a major asset. Willey denied the allegation.

Willey also disavowed interest in a valuable life insurance policy on her former husband's life, turning her share of the proceeds over to her grown children.

Willey, according to court documents, lives in Powhatan County in a $450-a-month rental home controlled by her children.

In court documents, Willey said her only income is occasional loans her children make to her for living expenses. She listed expenses of about $1,600 a month and said she has not held a job since 1995.

Willey, whose former husband was a prominent Richmond lawyer and the son of a longtime state senator, burst onto the national scene when she was identified as a former White House volunteer who allegedly had been groped and fondled by President Clinton.

Although she told her story on national television and appeared numerous times before federal grand juries investigating Clinton, Willey became a somewhat peripheral figure after disclosures about White House intern Monica Lewinsky.

News reports have indicated that Willey still may be of interest in ongoing Clinton investigations because of her claims about efforts to influence her testimony.

Willey married a longtime friend, Billy Schwicker, last year, and she said then that they divide their time between Florida and Virginia.

Judicial Watch, a Washington area public-interest group, recently won a federal court case saying Clinton violated the Privacy Act in dealing with letters Willey sent him. Clinton publicly released the letters in an apparent effort to show that Willey remained a devoted friend after the alleged White House incident.

Clinton has repeatedly denied he did anything inappropriate to Willey.



-- Hey Hawk - here's another one for ya (@ .), May 13, 2000

Answers

this proves to me she wasnt out for money, and that her allegations are true.

-- boo (boo@home.com), May 13, 2000.

"White trash", "trailer trash", Christian yahoos (white of course)---the only groups that are politically correct targets of prejudice.

-- Lars (lars@indy.net), May 13, 2000.

Thank God for Karma. She'll get what she deserves.

-- Hawk (flyin@hi.again), May 13, 2000.

Willey is for real I think. No book. No real bookings on the TV circuit. A very pretty lady who got widowed, needed a job, squeezed & grabed all in short order and was foolish enough to say something. Her mistake was in thinking that mentioning it would make a difference and I'd bet she wishes she never had.

-- Carlos (riffraff@cybertime.net), May 13, 2000.

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