‘Octomom’ files bankruptcy papers

Posted April 30, 2012, at 10:05 p.m.

SANTA ANA, Calif. — Nadya Suleman — known as “Octomom” — filed bankruptcy papers on Monday here in federal court.

Suleman’s debt could be as much as $1 million — 20 times more than her net worth, according to court documents. The mother of 14 has up to $50,000 in assets.

“I have had to make some very difficult decisions this year, and filing Chapter 7 was one of them,” Suleman, 36, said through an e-mail sent by her manager, Gina Rodriguez. “But I have to do what is best for my children, and I need a fresh start.”

Under a Chapter 7 bankruptcy, a court-appointed trustee will go through and liquidate whatever assets Suleman has that can be used to pay off her creditors. Debtors like Suleman typically receive a discharge from most of their debts in a Chapter 7 bankruptcy case, according to the federal courts website.

The court will go through Suleman’s finances — including her debts and her current income — to make sure she is not abusing the protections of a Chapter 7 bankruptcy.

The list of people and organizations to which Suleman owes money include her father, Ed Doud; the city of La Habra’s water department, which supplies residents’ water; DirecTV; Whittier Christian School; Verizon Wireless; Southern California Edison; a gardener; and the Department of Motor Vehicles.

Suleman owes more than $30,000 to Amer Haddadin, the previous owner of her four-bedroom, three-bathroom home in La Habra, in Orange County.

Through an agreement known as an all-inclusive trust deed, Suleman purchased the home from Haddadin more than three years ago. Suleman, who holds the deed, was responsible for making the monthly payments to Haddadin, who in turn, was to pay the mortgage.

But after Suleman fell 11 months behind on her $3,000 monthly payments, Haddadin also fell behind — prompting foreclosure proceedings.

Suleman gave birth to eight babies in January 2009 after already having six. All of the children were conceived through fertility treatments.

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(c)2012 The Orange County Register (Santa Ana, Calif.)

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