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Octomom's Chapter 7 bankruptcy case dismissed

A judge dismissed 'Octomom' Nadya Suleman's attempt to discharge approximately $1 million of debt in bankruptcy court. Residents of Livonia, Michigan, may remember when Ms. Suleman came into the national spotlight after giving birth to octuplets conceived through in vitro fertilization. Her Chapter 7 bankruptcy was thrown out, the judge said, because she failed to file a dozen financial documents and statements related to her inability to pay her debts.

Suleman's petition listed more than 20 creditors to which she is indebted to. These creditors included utility companies, her father, and a Christian school. In a Chapter 7 filing, the bankruptcy trustee is required to liquidate the petitioner's assets in order to pay off creditors before discharging any debts. However, filers are entitled to certain exemptions, which vary from state to state.

Suleman is currently unemployed, but has sold photographs of herself and her children to tabloid publications in order to help pay her bills. Some of these included topless photographs for a magazine in the United Kingdom. To make ends meet she is also answering pay-per-minute phone calls from consumers interested in speaking to the minor celebrity for a variety of reasons.

Unfortunately for Ms. Suleman, her dismissed bankruptcy case voids the protection afforded her by the automatic stay, which prevented creditors from attempting to collect debt from her. This is especially troubling, since she is responsible for caring for 14 children. Her situation is a testament to the need to obtain a competent bankruptcy attorney when filing Chapter 7 bankruptcy anywhere in the U.S., including in Livonia, Michigan.

Source: The Washington Post, ""Octomom" bankruptcy case thrown out of court after she fails to complete and file paperwork," May 15, 2012

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