Sonja Morgan’s movie project Fast Flash to Bang Time failed and she was forced to settle a lawsuit for $7 million.  You’ll recall that Sonja is one of the stars of the reality show, Real Housewives of New York, RHONY.

In her November 2010 Chapter 11 petition, Sonja listed $19.8 million in debt and $13.5 million in assets.

Sonja is competing for the “World’s Greatest Debtor” in the March Madness Bankruptcy Brackets.  See Sonja Morgan with the other Real Housewives of Bankruptcy.   Read more about Sonja’s case in this earlier blog, Sonja Morgan of RHONY Loses Control of Her Chapter 11 Bankruptcy Case.

The post The Real Housewives of Bankruptcy: Sonja Morgan appeared first on Baltimore Bankruptcy Lawyer.

Sonja had bitterly fought this attempt by Hannibal Pictures, Inc., to force the reality star to sell her assets for less than she wanted, but enough to pay creditors. Hannibal sued Sonja and her production company Sonja Productions LLC in 2006, saying that the reality star and her film outfit broke a contract agreement by failing to provide the promised funding for Fast Flash To Bang Time, a John Travolta film that was never made. The case was decided for Hannibal in September 2009 with the judge awarding a $7 million verdict.

A Chapter 11 trustee has the complete power to sell all of Sonja’s assets, capture her income and largely manage her affairs. Because she remains in Chapter 11 Sonja does retain the power to file a plan of reorganization, detailing her plan to pay creditors. However, Sonja has submitted at least two plans that have already failed in the bankruptcy court. The appointment of Gazes may force the former wife of billionaire John Adams Morgan, great-grandson of financier John Pierpont Morgan, to finally submit a plan that creditors, and the bankruptcy court, will approve.

The post Sonja Morgan of RHONY Loses Control of her Chapter 11 Bankruptcy Case appeared first on Baltimore Bankruptcy Lawyer.