Celebrity Bankruptcy Alert – Lindsay Lohan’s Mom Files Chapter 13 Skip to main content
×
×

You are here

Celebrity Bankruptcy Alert – Lindsay Lohan’s Mom Files Chapter 13

Print

Celebrity bankruptcy

Another celebrity bankruptcy alert - lessons for Greensboro consumers

Image by Roberto Nickson via Unsplash

Dina Lohan, Lindsay Lohan’s mom, is back in the headlines. She’s made news in the past for brawling with her ex-husband and father of her children, Michael Lohan. They sparred about money in the past, and now Dina’s money woes are front and center as she recently filed Chapter 13 bankruptcy in New York state. Here’s a look at the latest celebrity bankruptcy case.

Foreclosed home, other debt issues

In April, the bank foreclosed on Dina Lohan’s home after she failed to make her mortgage payments. The home has been subject to ongoing issues and collection notices. Five years ago, mortgage holder JPMorgan Chase sued Dina for foreclosure. However, she cut a deal with the lender, and they stopped the foreclosure process.

But this year, after months of missed payments, the bank came back and wanted the money they were owed on the home and restarted foreclosure proceedings. Dina Lohan’s home was set to be up on the auction block on a Tuesday, but she stopped with a last-minute Chapter 13 bankruptcy filing the day before. That gives her time to work on a deal.

Dina Lohan bankruptcy details

Lindsay Lohan’s mom claimed to be $1.7 million in debt when she filed Chapter 13 in New York state. She owes back income taxes to the states of California and New York plus to Uncle Sam, Victoria’s Secret, Honda for a car loan, and her son’s private school. The largest part of her debt is the mortgage on her home, which exceeds $1.5 million.

Dina Lohan listed assets exceeding a million dollars in her Chapter 13 case file which means she may be able to reorganize her debts on a repayment plan to catch up on what she owes. For now, the Chapter 13 filing means the mortgage holder can’t proceed with the foreclosure auction. From there, if she sticks to the court-approved repayment plan, she could get back on track.

Lessons from celebrity bankruptcy

While most consumers don’t have close to $2 million in debt and $1.5 million mortgages, the problems are the same at any income level. Once you get behind on your bills, it can be hard to catch up without intervention. Filing Greensboro bankruptcy works the same for you as it did for Dina Lohan. It can stop a home foreclosure or vehicle repossession.

Your bankruptcy lawyer proposes a repayment plan that lasts three to five years with the goal to catch up the delinquencies on your secured debt like your mortgage and car loan. Unsecured debt like medical and credit card bills can be lessened using Chapter 13 bankruptcy depending on your income and assets and equity in those assets.

Car loans and Chapter 13 bankruptcy

In addition to stopping foreclosure, Chapter 13 can be very helpful when it comes to a past-due car loan. Greensboro bankruptcy filers can stop vehicle repossession and, if the car was already taken, may be able to get it back soon after filing their case. Not only that, but you may be eligible for a “cram down” on your vehicle loan.

So long as your car loan isn’t brand new (plus a few other conditions), your bankruptcy lawyer can ask the court to reduce the balance you owe down to the fair market value of the vehicle. Plus, if your interest rate is high, you may be able to get it significantly reduced. This can make your vehicle far more affordable and help you stick to the repayment plan.

There are always good lessons to be learned from celebrity bankruptcy, and Dina Lohan’s case shows that it’s never too late to stop a foreclosure auction, so long as the gavel hasn’t dropped on the sale!

Chapter 13 can help you get back on track when you’ve fallen behind on secured debt payments. To find out more, read reviews from our clients, then call 1-888-234-4181. Contact the Law Offices of John T. Orcutt to schedule a free Greensboro bankruptcy consultation at one of our locations in Raleigh, Durham, Fayetteville, Wilson, Greensboro, Garner or Wilmington.

Debts Hurt! Got debt? Need help? Get started below!

What North Carolina County Do You Reside In?