Same thing here! Called Sears, and they sent a repair man. $99.00 for showing up. The bottom side of the PTO knob (?) electrically connects to a clutch, the wires were ripped in half!
There is a metal finger about 2" by 1/4" welded to the frame that keeps the clutch from engaging when not needed. It had broken off, allowing the clutch to free wheel, cutting the wires.
The fix: disconnect the engine, remove the clutch and reweld the finger. Or, buy a new frame ($$?), buy a new clutch, about $250, finish by putting it all together again, more $$ for labor.
I declined the estimate because I feel, by looking at the broken finger that this is a case of either poor work, or inferior material since there was no outside force, concrete, wood, etc. that could have caused this. I ran over nothing but grass. I feel Sears is totally responsible and should repair it at no cost.
We'll see how far I get.