A financial issue concerning a bankruptcy case has arisen in Karen Crowe’s candidacy for Maple Valley City Council.

Crowe, along with her husband Michael Evan Crowe, filed for Chapter 7 bankruptcy on Feb. 10 in U.S. Bankruptcy Court, Western District of Washington for unsecured debts adding up to about $82,000. The case was completed and the debt discharged June 17 according to court records. Discharging a debt in a bankruptcy means a person is no longer responsible to pay the debt.

The bankruptcy was for individual debt, not for a business. The couple owns and operates EnviroSpect Northwest, which is based in Maple Valley. It is described on the company’s website as providing indoor environmental and property inspections services.

During a phone interview Tuesday, Karen Crowe answered all questions concerning the bankruptcy, which she described as “one of the most devastating decisions in our life after having worked so hard for good credit.”

Crowe said she believes the bankruptcy issue does not reflect on her ability to work with a city budget as a council member if elected.

“Do I think this has anything to do with a (city) budget? Absolutely not,” she said. “This (the bankruptcy) was not due to lots of bad decisions. We had to give some support to family members and our business.”

According to King County Superior Court records, the case began in October when Capital One Bank filed a lawsuit against Karen Crowe for a $4,784.33 debt.

The case was ordered in default for failure to appear and the total increased to $5,179.05 with fees and interest.

Following the Capital One suit, Karen Crowe stated they filed for bankruptcy in February.

“We tried to work with everybody,” she said. “We tried to work out payments, but no one would work with us.”

The schedule F document in the court bankruptcy papers listed six creditors with unsecured debts adding up to $82,452. The creditors were a Bank of America credit card for $19,193, Capital One Bank credit card for $5,339, Citibank credit card for $38,967, HSBC Best Buy for $2,445, a personal loan with Key Bank for $13,000 and a student loan with Sallie Mae for $3,508.

Karen Crowe said the couple’s financial problems began in 2008 when they opened EnviroSpect and a short time later the economic recession hit. She had left a job with T-Mobile to help her husband with the business.

She stated some of the money was used to keep the business going.

“When you are in business you have to take risks,” Karen Crowe said. “Sometimes they pan out, sometimes they don’t.”

She said the bankruptcy had “nothing to do with mismanagement of our money. It was because of unforeseen circumstances.”

Karen Crowe noted the bankruptcy was personal and she has never been involved in a business bankruptcy.

“This was one of the toughest decisions we ever had to make,” she said. “We paid every bill on time for as long as I remember.”

She said EnviroSpect was a franchise the couple purchased. The franchisor went out of business during the recession.

“When it went out of business we lost all support,” she said.

The couple’s home and car were protected during the proceedings. A Chapter 7 bankruptcy stays on an individual’s credit history for 10 years.

A bankruptcy is a civil action taken in federal court and is not a criminal matter.