Dorit Kemsley is the newest addition to the Real Housewives of Beverly Hills cast and she and her husband Paul will flaunt their riches on the upcoming season of the show. However, a new report reveals the couple once had secret debt problems.
Paul, 49, filed for chapter 15 bankruptcy in 2012, claiming to be $10 million to $50 million in debt. He reported having $1 million to $10 million in assets at the time.
The U.K. based businessman revealed that he was involved in a foreign bankruptcy case as well, and wanted it to be recognized as a main proceeding in the extensive filing obtained by RadarOnline.
Paul, who is a British citizen living in Florida, claimed his primary assets and creditors were in England and requested a foreign proceeding. He claimed his kids, Daniel, then 16, Atlanta, then 11, and Tatum, then 10, depended on him financially, but he only had roughly $104 cash in hand, and $1,000 in the bank.
He was separated from his ex-wife at the time, but papers revealed he had a New-York based girlfriend — possibly Dorit, 40. “My estranged wife currently pays for all this as I have no income,” he declared on his monthly expenses sheet totaling $34,000.
He first had difficulty paying his debts in “2008 following the collapse of the Rock Group.”
“The property crash led to the failure of my property development group, ‘Rock,’” he wrote in the docs. “Following this collapse, the income I have been able to generate has not been sufficient to service and repay my creditors. I have existed largely by borrowing from friends and family.”
Yet, he listed that he was the Vice President of Planet Hollywood, raking in $7,800 per month and was listed in three other suits pertaining to finances at the time.
The United States Bankruptcy Court Southern District of New York denied his petition for recognition on March 22, 2013.
Paul attempted to reopen the case on May 15, 2013, but the court denied that request a month later as well.
A rep for Kemsley told the site, “Much like many other businessmen Paul Kemsley was affected by the credit crunch of 2008-2009, but he hasn’t let it hold him back. Kemsley has found new love with his wife Dorit, a reignited passion for business and he’s reestablished himself. He hopes that people will take inspiration from his journey, after all it’s not about how you got knocked down it’s about how quickly you got back up.”
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