Danny Trejo Offers to Pay $800k Per Year Until 2028 to Settle Massive IRS Debt in Bankruptcy Plea
July 3 2023, Published 5:30 a.m. ET
Danny Trejo has proposed a repayment plan as part of his Chapter 11 — which would require the legendary actor to make payments totaling $800k per year until early 2028, RadarOnline.com has learned.
According to court documents obtained by RadarOnline.com, the Spy Kids star said he’s ready to pay off his massive tax debt.
Earlier this year, Trejo filed for bankruptcy listing $2.2 million in assets and $3.6 million in liabilities. Most of his debt was back taxes which the entertainer said was caused by taking improper deductions for years. The case covers the actor individually and does not include his various successful businesses. The actor has a stake in an extremely popular coffee/donut shop, a taco restaurant, and a record label.
Court records revealed Trejo’s monthly income is $165k and his monthly expenses total $14k.
His assets include a home in Mission Hills, Cali worth $1.2 million and a 2nd property in the city of Pacoima worth $750k.
Other assets include a 1942 Chevrolet Master Deluxe worth $10k, a 1976 Cadillac Seville 4D worth $12k, a 1998 Cadillac Eldorado 2d worth $5k, a 2001 Cadillac Eldorado 2D worth $7,500, a 1961 Ford Truck worth $15k, a 2006 Range Rover worth$6k, a 1997 Cadillac Eldorado worth $2k, a 2005 Ford Truck worth $8k, a Harley Davidson motorcycle worth $7,500 and a 2006 Mercedes Benz worth $12,500.
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In addition, he has $15k worth of household furniture, $10k worth of clothing, and another $10k in jewelry. Trejo said he had $10k in cash and another $5k in his bank accounts.
In his new filing, the actor’s attorney wrote, “Danny Trejo is a well-known and popular actor and entrepreneur, he has appeared in many films including Desperado, Heat, From Dusk Till Dawn, Con Air, Spy Kids, the Machete franchise and many other movies and productions. Mr. Trejo also spends a substantial amount of time as a drug counselor and is engaged in public service activities.”
Trejo said he earned $1.1 million in 2020, $1.7 million in 2021, and $3.3 million in 2022. His proposed repayment plan has him making a total of 4 payments of $200k per year totaling $800k. He will make the payments from October 2023 through February 2028, when he would make a final payment of $300k.
His lawyer did note, “Mr. Trejo’s acting career has over three decades and he continues to be in popular demand for films and other productions and the Debtor contends that therefore is a reasonable likelihood that he will make all payments under the Plan. The entertainment industry, however, is uncertain by its nature and Mr. Trejo’s income is not guaranteed.”
The judge has yet to sign off on the plan.