The Most Famous Bankruptcies of 2011

While the question of "who" holds the title of the most infamous bankruptcy of 2011 could be disputed; one fact is not up for dispute, four successful celebrities filed bankruptcy this year. In fact, for one of these celebrities this is the second time they have filed bankruptcy.

Toni Braxton
Please don't take the Grammys! The six-time Grammy award winner is making headlines as her six Grammy Awards may be sold to cover her bankruptcy debt. It has been reported that Braxton owes $125,000 to creditors and that the trustee overseeing her bankruptcy liquidation could in fact seize and sell any property covered by the agreement including her awards.

Toni Braxton is not a stranger to the process, she has filed bankruptcy not once, but twice. Braxton blamed her reported debts of between $10 million and $50 million on health problems and was forced to cancel a Las Vegas run because of heart problems and then revealed that she had lupus which limited her ability to work. Health related bills have been cited as the number one reason for most bankruptcy filings.

Sonja Morgan

Sonja is the former wife of John Adams Morgan of the whole J.P. Morgan lineage. She is also a Bravo celebrity appearing on the Real Housewives of New York throwing fabulous parties and not wearing pants.

She claims to be worth $20 million but has debts totaling about $19.8 million.

Eva Longoria

She might not be a real life Desperate Housewife, but Eva Longoria is desperate to save her business interests. Longoria filed for bankruptcy as a “preemptive measure” to protect her restaurant and night club, Beso, from a lawsuit brought by a business partner.

Lenny Dykstra

Earlier this month Dykstra was indicted by a Federal Judge for bankruptcy fraud and theft. Prosecutors say that he either sold, destroyed or removed a stove, chandelier and other items totaling $400,000 from his $18.5 million home after filing for bankruptcy.

He is also accused of lying about the value of his estate so that he could keep profiting while hiding assets from the bankruptcy courts. According to his now former attorney Mark Werksman, “He didn’t belong in bankruptcy, he had a problem dealing with the trustees dismantling his property and investments.”