A Salcha couple who recently pleaded guilty to planning to kill a U.S. judge for ordering them to pay back taxes has filed for bankruptcy.
The Fairbanks Daily News-Miner says Lonnie and Karen Vernon filed for voluntary Chapter 7 bankruptcy last week from two Anchorage area jails were they are being held.
Bankruptcy rules would require that the couple have income of less than $100 per month after paying certain debts and expenses to be relieved of their debts. The bankruptcy proceeding halted the auction of their Salcha home, which had been scheduled for Thursday afternoon.
The Vernons have been jailed since March 2011, when they were arrested in an FBI sting operation that also led to the arrest of Cox and fellow militia member Coleman Barney.
Contact Chris Klint