The Daily Press reports that former Virginia House of Delegates member, who was sentenced to nine and a half years in prison last month for bribery and extortion, has received more bad luck. On Tuesday, his bankruptcy case was dismissed because he failed to revise his repayment plan.

Hamilton, along with his wife Kimberly, filed for Chapter 13 protection in February. Under Chapter 13 bankruptcy, debtors set up a three to five-year repayment plan in which they are able to keep most of their property. At the end of that period, any remaining debt is forgiven.

Sources said the couple's original repayment proposal would have had them making total payments of $73,000 over a five year period to over 20 creditors. Of that amount, $4,000 would have gone to the IRS and $1,000 to the commonwealth of Virginia. Unsecured creditors would have received around $2,600 of the $87,101 they were owed, which is around three percent.

In their filing, the Hamiltons reported listed around $520,000 in assets and about $594,000 in liabilities.

Because the Hamilton's bankruptcy petition has been dismissed, their creditors may now seek judgments against them. Among their creditors is the Internal Revenue Service, the commonwealth of Virginia, and various credit card companies, banks, and other individuals.

The dismissal of their bankruptcy petition comes just months after Phil Hamilton was convicted of bribery and extortion for involvement in securing state funding to establish the Center for Teacher Quality and Education Leadership at Old Dominican University while he was vying for a position their as director. Hamilton will begin serving his nine and a half year sentence on September 19.

Source: Daily Press, "Phil Hamilton's bankruptcy case dismissed," Peter Frost, August 23, 2011.