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Judge dismisses 'Octomom's' chapter 7 bankruptcy case

Earlier this month, this blog reported that Nadya Suleman has filed for bankruptcy protection on the West Coast. The woman gained notoriety after giving birth to octuplets, but her financial situation has continued to plague her, despite her media attention. Unfortunately, the paperwork in her chapter 7 bankruptcy was reportedly not fully completed in the bankruptcy court file. Now, the bankruptcy judge has dismissed the bankruptcy court case.

Seasoned Cincinnati bankruptcy lawyers know that the bankruptcy code is complex, and filing a bankruptcy petition in either a chapter 7 or chapter 13 bankruptcy case requires specific information and documents to perfect the bankruptcy filing. Sources indicate that Suleman's bankruptcy filing was deficient-lacking what the media characterizes as a dozen financial documents and statements that are required under the bankruptcy laws to prove the case.

Originally, Suleman filed a bankruptcy petition that alleged she owed as much as $1 million in various debts. She indicated that she owed money to at least 20 creditors, ranging from her father to the parochial school where her kids attend classes.

The bankruptcy court had given Suleman until Monday to complete her bankruptcy documentation, but apparently, the missing paperwork was never filed with the court.

Suleman, often called "Octomom" in the media, rents a home and has been unable to pay her landlord. The home went into foreclosure due to delinquent payments by the landlord toward the mortgage. The bankruptcy petition put a halt to the foreclosure proceeding, which was scheduled for a foreclosure sale.

In dismissing Suleman's bankruptcy case Tuesday, the automatic stay placed on collection efforts by the bankruptcy court was also lifted. That means all of Suleman's creditors can resume collection activities on her outstanding debts.

The foreclosure sale on the home where Suleman resides was temporarily halted. The original foreclosure auction was scheduled to occur May 7. The mortgage holder asked for a delay on that sale until May 21. Now that the bankruptcy case has been dismissed, the foreclosure proceedings can resume.

The original owner of the home says that he has never seen a dime from Suleman. He says that she owes him $483,000 in back rent. He is taking Suleman to court and has a court hearing scheduled for June 14.


  • The Orange County Register, "'Octomom' bankruptcy thrown out of court," Doug Irving and Lou Ponsi, May 15, 2012
  • Los Angeles Times, "'Octomom' Nadya Suleman's bankruptcy case thrown out," KTLA News, May 16, 2012

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