Danny Trejo, an actor, and entrepreneur, has filed for bankruptcy and has pledged to shell out $800,000 annually for the next five years to resolve his financial obligations.
Danny Trejo Faces Bankruptcy
Danny Trejo had to liquidate one of his residences to afford to cover IRS repayments in his filing for bankruptcy, while his own dispute disrupted his initially planned plan.
Trejo’s legal action centers solely on the actor and overlooks his lucrative business pursuits, which include shares in a coffee/doughnut shop, a taco-eating establishment, and an audio recording label.
In a published article in Radar, Trejo announced Chapter 11 insolvency, claiming $2.2 million in assets and $3.6 million in liabilities. The IRS owes him the majority of his debt.
Repayment Scheme of Trejo
His holdings include a $1.2 million primary property in Mission Hills, California, and a $750k second home in Pacoima. Trejo’s mom bequeathed him the second property.
The News Herald article states that Trejo has suggested a repayment scheme in which he would make $800,000 each year until early 2028 as part of his Chapter 11 bankruptcy, which is also known as “reorganization bankruptcy” which enables a corporation to remain functioning whilst reconstructing bankruptcy.
Trejo anticipates that selling the business would generate a profit of $400k, which would then be utilized to cover the first planned commitment to the IRS and the California Franchise Tax Board.