Arizona woman left in $200,000 in debt after dad's death is now fighting to save her childhood home

When Kaley Petersen (@woojis.bakery on TikTok) lost her dad, she didn't have time to grieve because she had to get back on her feet to save her father's home from foreclosure. 

Petersen was only 3 when her parents separated, and her father became the primary caregiver, she told PEOPLE. At 18, when she got pregnant, her father was the first person she confided in, and her loving dad let her move into his house as she raised her son. "My dad was always there for me, so when I lost him, it was like I lost more than a dad. I lost my best friend. I lost the only support I really have," she said. Petersen's father died unexpectedly from diabetic ketoacidosis that went untreated because he couldn't afford health insurance. The woman had hardly been able to grieve the loss properly when she learned about her dad's debt of over $200,000. She said if she fails to pay her dad’s missed mortgage payments and lawyer fees — roughly $30,000 — by September 3, 2025, she’ll lose her childhood home.

Petersen had found her passion for baking in that same house, and now, to save her father's home, she is selling baked goods on the streets. In her small horse trailer, she's running a small bakery shop, called Woojis Bakery — inspired by the nickname her father gave her. At present, PEOPLE claims she has been selling her baked goods and getting closer to  $30,000 goal. In May, Petersen began her journey and shared the video on TikTok. As her video continued to gain traction, she said, "Everyone’s been very encouraging — even people who say they can’t help financially." Petersen has started a GoFundMe to raise the initial $30,000 she needs to save her childhood home, which, so far, has received over $13,000 in donations.

A survey by Debt.com revealed 55% of Americans expect to pass on debt to their next of kin when they die. In 74% of cases, the amount is at least $5,000. “Most Americans don’t know which debts they inherit and which they don’t,” Don Silvestri, president of Debt.com, said in a statement. “The topic isn’t confusing; it’s just uncomfortable. So many of us avoid it entirely.” This leaves so many US children without answers, struggling to find the end of a bottomless money-eating pit.

Reacting to Petersen's story, @jm commented, "Girl, I don’t know you, but as a dad of a beautiful girl myself, I am so freakin' proud of you; words can’t describe how proud I am! Your father must have been an awesome man who raised a strong and beautiful woman. I’m in the Netherlands, or I would’ve bought every damn cookie all day, every day to help you! You got this!" @tylerwoodward06 said, "We are proud of you. Doing what you are doing isn’t easy, but you are killing it. Keep your head up and keep grinding; your dad is definitely watching over you! Sending love and prayers for your success!"

@justbeefizzinkrista commented, "It breaks my heart, but at the same time, I'm sure your daddy is proud of you!" @aria wrote, "This is so, so sad; so many people who have lost their loved ones never knew about life insurance and the impact/security it can have on the family you leave behind when you pass away." @brittneyjo420 wrote, "Boosting! I am so sorry for your loss. I hope we can help you save it; this is the last thing you need to be worrying about while grieving him." @angie_mfc shared, "I hope this helps! I went through this in 2007, and it was the worst year of our lives. Learned to value the little things in life."

You can follow Kaley Petersen (@woojis.bakery) on TikTok to support her in her journey. 

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