Danny Trejo Fighting to Save $1 Million Mansion From Being Seized in Bankruptcy, Actor Promises to Pay Back Debt
July 6 2023, Published 4:00 p.m. ET
Danny Trejo is fighting to save his Los Angeles mansion from being taken from him as part of his bankruptcy, RadarOnline.com has learned.
According to court documents obtained by RadarOnline.com, Barclays Mortgage Trust has asked the court for permission to foreclose on Trejo’s home in Mission Hills, California.
Barclays needs permission from the court to act against the property because Trejo is in the middle of a Chapter 11 case.
As RadarOnline.com previously reported, earlier this year, Trejo filed for bankruptcy listing $2.2 million in assets and $3.6 million in liabilities. Most of the debt was owed to the IRS for back taxes.
Trejo’s successful businesses — including his taco and donut shop — are not a part of the bankruptcy. In his filing, Trejo said his average monthly income is $165k and his monthly expenses total $14k.
Recently, Trejo proposed a repayment plan where he would make 4 payments of $200k per year until early 2028. His creditors have yet to respond.
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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.”
One of Trejo’s biggest assets is his Mission Hills home. In a newly filed motion, Barclays accused the actor of failing to make 2 payments on the mortgage after his bankruptcy was filed.
Further, they said the principal owed on the property is $294k with a $2 million lien filed against it by the IRS. Barclays said the home is worth an estimated $1.2 million.
Trejo has objected to Barclays' request to foreclose on his home. He said has paid the back payments — claiming there was an issue with his bookkeeper making the payments initially.
A judge has yet to rule.