Banker's Daughter Files Chapter 7

Laura P. Chambers of Fayetteville filed for chapter 7 bankruptcy on May 14, documents show.

Chambers is the daughter of John Ed Chambers III, CEO of Chambers Bancshares of Danville, and the former wife of Seth Kaffka, president of the former Barber Group of Springdale.

Both Kaffka and Laura Chambers were guarantors on a $16.7 million mortgage on the Legacy Building, a seven-story condo project in Fayetteville, along with Laura Chambers' sister, Keri Barber, and her husband, Brandon Barber. The building has since been foreclosed upon and was sold at auction in November for $11.25 million to the banks that financed its construction.  

In the bankruptcy paperwork, Laura Chambers lists assets of $498,000 and liabilities of $18.68 million.

Her creditors include First Federal Bank, First State Bank of Northwest Arkansas and Legacy National Bank of Springdale.