Boy Filing Bankruptcy Is Now In Custody Battle

WASHINGTON - Ten-year-old orphan Shawn Powell went to court yesterday hoping a judge would approve part of his unusual bankruptcy plan so that he could avoid eviction from his Laurel, Md., home.

Instead, Powell learned that he may be the object of a nasty custody battle, as two adult relatives accused each other of wanting to care for him to get a share of his insurance money.

"It's a shame. No young boy should have to go through this," said Brett Weiss, Shawn's attorney.

Three months ago, Powell became perhaps the youngest person ever to file for Chapter 13 protection in U.S. Bankruptcy Court. The filing was a gambit by Weiss to prevent a mortgage company from foreclosing on the house where Shawn and his brother, Ray Powell Jr., 12, have lived with their uncle since the boys' father died in February.

Yesterday, Shawn, accompanied by Weiss and his uncle, Jeffrey Powell, walked into U.S. District Court in Greenbelt, Md., for a bankruptcy hearing. Their goal was to win approval of a plan to repay about $19,000 in overdue mortgage debt.

By having Shawn file for bankruptcy in August, Weiss hoped to buy enough time for the uncle to become the boys' legal guardian, thus allowing the children to collect on their father's $100,000 life-insurance policy and prevent eviction.

At the request of a court trustee, the hearing was postponed to allow the uncle to go through with a hearing in Prince George's County Circuit Court next month in which he will attempt to become the boys' legal guardian.

But Shawn, his uncle and his attorney were taken by surprise when Shawn's adult half-sister showed up at the courthouse and told reporters that she plans to challenge the uncle's efforts to become the boys' legal guardian.

The half-sister, Tasha Kelly, 19, said that the children would be better off with her than with Jeffrey Powell, who has been disabled and unable to work since he was stabbed and seriously injured two years ago.

Kelly has been taking care of the boys' sister, Tracy, 9, since last February when their father died. She said she has hired an attorney and will try to become the legal guardian for all three Powell children.

Jeffrey Powell suggested that Kelly is motivated by the possibility of obtaining insurance money. "I kind of expected it when money became involved," Powell said.

She says the same of him.

A series of tragedies led to the family predicament.

In February 1997, Patricia Powell, the mother, died in a car crash. A year later, relatives said, Ray Powell Sr. drank himself to death.

Tracy wanted to live with Kelly, her half-sister. Shawn and Ray Jr. wanted to stay with their uncle, who began to care for them in the family home. But Ray Sr. had left his finances in a shambles, and Jeffrey Powell's inability to work didn't help matters. By August, five house payments had been missed, and the mortgage company moved to foreclose.

After news stories of the Powell boys' plight appeared in August, people pitched in to help. To date, more than $34,000 has been contributed for the mortgage and is in a trust fund, Weiss said.

The boys have appeared on TV several times. Shawn's appearance on the "Montel Williams Show" is to air today.