A bankruptcy trustee is accusing actors Tisha Campbell-Martin, 47, and Duane Martin, 50, of hiding their assets.
The Martins filed for Chapter 7 bankruptcy protection in January, claiming substantial debts of over $15 million and assets of only $313,000.
The Martins’ assets included $65k in real estate, $200 cash, several cars and less than $200 in their bank accounts, all of which were seized by the trustee.
Celebrity blogger theJasmineBRAND.com reports exclusively that the Martins were also ordered to turn over their production company, XE Vision, so the trustee can seize all paychecks flowing in to that business.
The trustee discovered that, soon after filing for bankruptcy, the couple created a new company called Won Hundred.
The trustee accused the actors of using the new company to hide paychecks she receives from her role on ABC sitcom Dr. Ken.
The former power couple was accused of refusing to turn over Tisha’s ‘Dr. Ken‘ paychecks which Tisha claims are paid to Won Hundred, not XE Vision.
The trustee accused Tisha of diverting 4-5 Dr. Ken paychecks totaling $185k into the new company.
On April 25th, a federal judge sided with the trustee and granted a preliminary injunction against the couple. The Judge ordered Duane and Tisha to stop transferring money or spending money deposited into the new company.
The judge said the company would be returned to the couple once the bankruptcy case is decided.
Chapter 7 bankruptcy requires debtors to turn over all assets, including vehicles, company equipment, office furniture, computers, jewelry, and collectibles.
A trustee is appointed by the bankruptcy court to examine the assets and determine how much cash the assets will bring at auction. Money made from the auction or sale will be distributed to the Martins’ creditors who presented claims to the bankruptcy court.
“Secured creditors” — meaning creditors whose debts are secured by real property such as cars, credit cards, homes, etc., are paid first. “Unsecured creditors” (lawsuit judgments) are paid last or not at all if the debts are discharged.
The benefit of filing Chapter 7 bankruptcy is that any remaining debts are discharged if there are no more assets to sell or if a debtor is debt poor.