Ex-NBA Star Larry Johnson Gets Bankruptcy Tossed - Still Owes Baby Mama
BOSSIP Exclusive: Ex-NBA Star Larry Johnson Gets Bankruptcy Dismissed – Still Owes Baby Mama $55K And A $1 Million Home!! - Page 2
Baller Must Pay Baby Mama $55K And Give Her His Million Dollar Mansion To Satisfy Debts
Ex-NBA star Larry Johnson’s Chapter 11 bankruptcy has come to an end after he reached deal with the person he owed the most to – his baby mama.
Johnson filed for Chapter 11 bankruptcy earlier this year, stating he had $828,000 in assets but more than $317,000 in liabilities. He listed his debts as $80,000 in back taxes, $120,000 in unpaid child support to two mothers of his kids with an unknown amount of back support to another baby mama named Laura Tate.
Tate filed docs in the bankruptcy earlier this year demanding she be allowed to investigate his finances. She claimed he’d told her in the past he transferred $26 million dollars to a trust account to avoid paying his debts.
Tate explained she obtained a child support judgment against Johnson back in 1998 for their daughter. Further, she said that the judgment ordered Johnson to pay $11,000 a month and over the past ten years he has not come even close to that … paying only $500 to $1,000 a month in support.
She explained that Johnson has a annual income of $250,000 and close to $700,000 in retirement funds. Tate filed a claim in the bankruptcy saying Johnson owed her $1.8 million per in support for their daughter.
Then on September 11th, Johnson and his baby mama hashed out a settlement following several months of “often difficult and intense negotiations” between the two parties, according to court docs.
Per their deal, Johnson has agreed to hand over the deed to the Aliso Viejo, CA home he owns to his baby mama. The home was purchased by Johnson for his baby mama and daughter to live in until their kid turned 25. However, this deal states the NBA star will hand over the rights to the nearly one million dollar home to Tate. Further, he will pay $55,000 to his baby mama over time.
The deal will settle all claims against Johnson from Tate and end all beef the two have with each other over child support payments.
Then recently, Johnson headed back to court saying since he has settled his beef with his largest creditor – his baby mama – he doesn’t even need the bankruptcy case anymore and is asking for it to be dismissed.
