Actor Danny Trejo worked out a deal to prevent his home in Los Angeles from being sold as part of his bankruptcy, RadarOnline.com has learned.
According to court documents obtained by RadarOnline.com, Trejo and Barclays Mortgage Trust have entered into a private deal that will avoid foreclosure on the property.
As we previously reported, Trejo is in the middle of a Chapter 11 case. He listed assets totaling $2.2 million and liabilities totaling $3.6 million. Most of Trejo’s debt was owed to the IRS.
Trejo’s assets include his main home in Mission Hills, Cali. Barclays recently accused the actor of missing two mortgage payments after he filed for bankruptcy.
Barclays said the principal owed on the property is $294,000. However, it explained that the IRS had also placed a $2 million lien on the property.
The company said the house in question is worth an estimated $1.2 million. Barclays asked the court for permission to sell the home despite filing for bankruptcy — which automatically pauses a debtor’s pending legal troubles and prevents new cases from being filed until the Chapter 11 outcome.
Trejo objected to the request, claiming there was an accounting issue, but he was now being paid up to date.
Under the deal reached, Trejo will make regular payments of $2,471 on the mortgage. However, if a breach occurs, Barclays will fight to bring the matter back to court.
Recently, the actor proposed an installment plan where he would make 4 payments of $200,000 per year through early 2028.
His attorney did note, “Mr. Trejo’s acting career has spanned more than three decades and films and other productions are still in high demand and the debtor claims that he is therefore reasonably likely to make all payments under the plan. However, the entertainment industry is inherently insecure and Mr. Trejo’s income is not guaranteed.”