According to court documents obtained by Radar, Erika’s lawyer is asking the federal judge presiding over the involuntary bankruptcy filed against Thomas. The “RHOBH” star says the trustee in charge of her soon-to-be ex-husband’s bankruptcy is in the process of putting the Pasadena home she shared with Thomas up for sale.
The trustee is set to kick out Thomas and sell the home to the highest bidder. The money from the sale will be used to pay off his many creditors. In newly filed court documents, Erika objects to the trustee’s sale because it doesn’t put any money aside for her.
Erika explains she is in the middle of a nasty divorce with Thomas. She argues California law allows her to stake a claim in the real property because she’s still going through the divorce. She wants the bankruptcy court to only allow the sale if the deal “provides for the preservation of Erika’s rights and to exempt property and its proceeds.”
The judge has yet to rule.
In court documents, Thomas’s financial state was revealed when a summary of his assets and liabilities was filed in the bankruptcy. The filing states the once-respected lawyer has over $74 million in assets with $56 million in liabilities.
His current monthly income is only $2,958. His biggest assets include the $16.5 million Pasadena mansion, a $1.1 million property in La Quinta, California along with a 2020 Range Rover and 2019 Aston Martin. The value of the clothes in his closet and his jewelry collection has yet to be determined. Thomas has over $5 million sitting in a City National Bank account.
The largest liability is listed as a $51 million loan owed to his law firm, Girardi Keese.
Erika is listed as a co-debtor in the documents. She appears to have been listed on financial documents relating to bills for American Express, City National Bank, various law firms, and their Wilshire County Club membership. The “Real Housewives of Beverly Hills” star has remained quiet amid the legal drama.
Last year, Erika’s world was turned upside after filed for divorce from Thomas after 21 years of marriage. She asked the court to award her spousal support and claimed she was unaware of the true extent of their assets or debts.
Thomas responded to the petition asking the judge to terminate Erika’s right to receive spousal support. The case is still pending in Los Angeles Superior Court. They remain legally married and have yet to reach a settlement.
Erika’s decision to end their marriage led to people giving her the side-eye. The divorce came around the same time Erika and Thomas were hit with a federal lawsuit accusing them of embezzling millions of dollars meant for his former clients. The court documents claimed Thomas used the money that was supposed to be paid to orphans and widows of plane crash victims to fund his lavish lifestyle with his then-wife.
Erika has yet to respond to the embezzlement allegations. The embezzlement lawsuit is still pending in federal court.