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Court dismisses Octomom’s bankruptcy petition Atlanta, GA

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Court dismisses Octomom’s bankruptcy petition

Judge Gavel, Scales of Justice and legal books on the desk

Just last week, we wrote about the personal bankruptcy filing of Nadya Suleman, the woman who gained notoriety (as well as the unfortunate nickname of ‘Octomom’) after giving birth to octuplets in 2009. Now, it appears that Suleman’s Chapter 7 bankruptcy petition has been dismissed after the mother of 14 reportedly failed to file required documents with the bankruptcy court overseeing her case.

Suleman’s failure to comply with the requirements of her case will likely have far-reaching effects on her finances and her large family. With the dismissal of her bankruptcy petition, her creditors are once again free to go after her and seek the payment of various debts. Suleman is estimated to owe between $500,000 and $1 million to nearly two dozen creditors ranging from her electric and gas companies to the schools attended by her children.

In addition, the foreclosure sale on Suleman’s home will likely proceed. The sale had been postponed at least twice due to her bankruptcy filing and other issues in the process.

Suleman reportedly does not own the home, but previously entered into a unique agreement with the homeowner in which she and her children would live in the house and pay rent, but would also have the deed to the home. This means that the homeowner has remained responsible to the bank for the mortgage payments, and that he is on the hook for the foreclosure and sale. He told a local newspaper that he is happy to see that the foreclosure process is going forward.

Source: The Orange County Register, “‘Octomom’ bankruptcy thrown out of court,” Doug Irving and Lou Ponsi, May 15, 2012

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