Real Housewives of NewYork star, Sonja Morgan, has filed for bankruptcy. She is claiming about $13M in assets and another $19M in debts – a shortfall of about $6M. That is quite shocking given her lavish lifestyle on the show. She owned a rather enviable townhouse in New York City and it is bewildering how she could be so deeply in debt. Miss Morgan also blamed John Travolta as well as her divorce from her much older husband.
Says the WSJ:
In addition to the lawsuit, Morgan cited her “bitter” divorce from her husband, a man she described as “many years my senior and a descendant of J.P. Morgan and John Adams,” for her mounting financial woes. She blamed her financial woes on a failed venture with Hannibal Pictures Inc. to make a movie starring John Travolta. That film was to be called “Fast Flash to Bang Time,” court papers said. Morgan said the movie never got off the ground because of “various conditions” that Travolta demanded and her production company, Sonja Productions, could not meet. Hannibal Pictures filed a lawsuit against Sonja Productions in California and won a $7 million judgment.
It is unclear how the fact that her husband is a descendant of J.P. Morgan impacts her situation today–I mean, how long has he been dead? But she seemed to find it relevant and included these explanations in her statements to the press, and in her petition. It also seems that her divorce from her husband is not yet resolved. Perhaps she will get a healthy settlement there. Along with her salary on the TV show, Sonya should land on her feet. Interestingly, she is seeking a chapter 11 bankruptcy. That is really a “reorganization” of her debts, the type of thing a corporation or business does all the time. With thirteen million in assets, she is probably a prime candidate for a chapter 11. The good thing is, if her divorce does settle, her spousal support and alimony would be safe from the bankruptcy trustee. She would receive exemptions for those.
Still, it must be humbling for her to find herself in this position.