Hollywood Couple Now Nearly Debt Free
Duane and Tisha Campbell-Martin can breathe a sigh of relief in their close to year long bankruptcy after a federal court judge ordered most of their $15 million in debts erased.
The couple filed for Chapter 7 bankruptcy in January, stating they owned $65,000 in real estate and $248,000 in personal property. However, they admitted they were drowning in debt and owed more than $15.1 million to creditors.
They said their monthly income was $7,655, but their monthly expenses come out to $16,953. In their petition, they claimed to only have $200 in cash on hand and less than $200 in their bank accounts.
The couple’s liabilities included $3 million to Broadway Federal Bank for a personal guaranty for a real estate loan they took out, $9.5 million to the City of Los Angeles for another personal guaranty, $82,000 in back state taxes for 2005 and 2011, $86,000 to New York State Department of Taxation, $43,000 for the 42 month lease for the 2016 Range Rover, $17,000 on the 2016 Jeep Wrangler lease, $39,000 to American Express, $455,000 to City National Bank, $538,000 to Comerica Bank, $17,000 for their nephew’s student loan, $2,500 to a Valet company and numerous other liabilities.
Shortly after they filed for bankruptcy, the trustee presiding over the case sued the couple accusing them of diverting their money to avoid paying their creditors. The case was pending for months until this week.
The trustee filed docs claiming he worked out a settlement with Duane and Tisha over several disputes.
The issues included Tisha’s paychecks from the TV show “Dr. Ken,” the home they lease and their Range Rover. The trustee took issue with the couple paying their landlord pre-rent in the amount of $55,000 – after they filed for bankruptcy – which covered the rest of the year. He also objected to them keeping their $10,000 lease deposit and their Range Rover.
The trustee believed the creditors were the rightful recipients of those assets, not them. Both parties attended a mediation in an attempt to work out their issues and were able to work out a deal.
Under the agreement, the Martins will pay the trustee a total of $338,000. The amount consists of the Dr. Ken’ paychecks Tisha received, totaling $98,000, $185,000 in post-bankruptcy payments and $55,000 in the “pre-rent” they paid for their current home.
The couple will hand over the rights to ALL their residuals to the trustee, which are estimated to bring in an additional $125,000 over time. They have the right to buy back the residual rights at a later time.
Then on November 14th the federal court judge came back and ordered the majority of Duane and Tisha’s debt in their bankruptcy discharged.
The order states that the couple will have their debt wiped clean except for most taxes, which were not a huge portion of their debt.
The trustee presiding over the case will continue to work out paying off their $15 million owed to creditors but the Martin’s can breathe a little easier following the judge ordering their debt be discharged.