Modesto, CA — Octomom has been dealt another blow in her ongoing financial struggle to raise her brood of 14. This time the judge dismissed her petition for Chapter 7 bankruptcy. It has been reported by entertainment news outlet, TMZ, that Octomom filed for Chapter 7 bankruptcy last April after going on welfare a month before.
As for the issue of going on welfare, she qualified for the state of California’s welfare program having an income of less than $119,000 per year, in a household of 15. She is currently receiving $2,000 a month and she could only use that money for food, not for the Brazilian blowout hair treatment she availed for $520.
According to TMZ, the judge dismissed Octomom’s (A.K.A. Nadya Suleman) bankruptcy petition because she failed to file all the necessary documents within the required timeframe.
For those people not in the know what a Chapter 7 bankruptcy is, it is also called liquidation bankruptcy. Your assets will be liquidated by a trustee to pay off your debtors. Not everyone can avail of a Chapter 7 because one has to go through a “Means Test” first and then fulfill the necessary documents like:
- Schedules of liabilities and assets
- Statement of financial transactions/affairs
- Schedule of income and other expenditures
- Schedule of executory contracts and unexpired leases
An individual must also go through credit counseling first before filing for the said petition. In Nadya’s case, she claims she attended a debt education course online. The debt education course must be taken 6 months prior to filing and must only be from a state accredited agency, hope she checked that out.
Octomom’s debts range from $500,000-$1,000,000; she is drowning in debt and claims she only has $0-$50,000. Her list of creditors include: DirectTV, Sparkletts, the Sylvan Learning Center, Kaiser Permanente, gardening services, a lawyer, utilities, phone companies and the list goes on and on.
She has already went as far as posing topless online and accepting a porn offer to help alleviate her financial burden but that doesn’t seem to be enough. And with the dismissal of her bankruptcy petition, the automatic stay that prevents her creditors from coming after her will be lifted and the creditors will be able to resume collecting their money back. It will even get worse if her creditors sue her and obtain a judgment against her.
The best thing she can do now is to re-file her petition. Even though her bankruptcy case had been dismissed within the past 180 days, she can re-file it as long as:
- She never violated any court order.
- She did not abuse the court nor filed a fraud bankruptcy claim.
- She never requested for the dismissal of her prior petition because her creditor requested the court to remove the automatic stay.
She does need to hurry though, her home is already in foreclosure and with 14 kids without a roof, the state of California may end up taking them away from her. Her situation kind of reminds us of that old lady that lived in a shoe, she had so many children, and she did not know what to do.
Want to learn more about bankruptcy? Visit the Thomas Hogan Law Office Bankruptcy Library.