As previously reported, Octo-Mom found herself at the center of a firestorm last Wednesday as photos surfaced of her house, showing the squalid living conditions she subjects her children to. A cleaning crew arrived to the house late Wednesday to scrub the graffiti-riddled, filthy house from top to bottom.
Amir Haddadin, the man who loaned Suleman more than $450k to buy the house, was told by Indy-Mac bank Monday morning that the auction had been postponed. "The bank told me that the auction had been postponed until May 7 and I told them that Nadya had filed for bankruptcy, which I think they already knew," Haddadin tells RadarOnline.com exclusively. "They didn't tell me why the auction had been postponed. This is not surprising that Nadya has filed for bankruptcy and now the bank will have to deal with it."
However, Amir's real concern is Nadya's children and their well-being. "I feel so sorry for those children and I worry about them. What kind of life are they living now? Going to the bathroom in the backyard of the house in portable toilets -- they aren't animals. Does Nadya realize that? Truly, what kind of life can these children have with her as a mother?" Amir asks.
The 36-year-old single mother's home, which has been in constant financial trouble since she moved in, has one bedroom with the words "do not enter" spray painted on the door and there is a visible dent where a chair has been propped to keep the door closed. Suleman said she receives about 5k a month in public assistance but is expecting that to end very soon.
The Orange County Children and Family Services department was called by Octo-Mom's hairstylist, but they inspected the home and determined the children were not in any immediate danger.
"I have had to make some very difficult decisions the year and filing Chapter 7 was one of them," she told E! News. "But I have to do what is best for my children and I need a fresh start."
Suleman recently posed nude in UK magazine for $8,000, and she explained to Anderson Cooper, "I have to do what I have to do to take care of my family."
In court papers, Suleman said she owes money to Sylvan Learning Center, childcare center Lad N. Lassie and private elementary school Whittier Christian School—debts that combine with others to amount to between $500,000 and $1 million.
Her net worth? Less than $50,000, according to court papers.
Suleman, 36, didn’t detail her financial hardship in the first documents that were filed in her Chapter 7 case—the type of bankruptcy where you generally sell off whatever assets you can to pay your debts.
The filing comes the week she could have gotten the boot from her landlord who, according to media reports, is losing the La Habra, Calif., home where Suleman and her 14 kids are staying to foreclosure. The owner has told local newspapers that Suleman hasn’t made rent payments for nearly a year.
It’s unclear whether Suleman’s bankruptcy could prevent an eviction for her and her children, including the 3-year-old octuplets.
Suleman said she also owes unspecified amounts to IndyMac Mortgage Services and to her gardener, Roberto Robles, according to documents filed in U.S. Bankruptcy Court in Santa Ana, Calif.
Octomom filed for Chapter 7 bankruptcy today in federal court, just one month after going on welfare. Apparently public assistance didn't go far enough.
The bankruptcy filing confirms what we pretty much already knew - that the mom of 14 is carrying a mountain of debt she has no hope of paying off.Chapter 7 is the most serious form of bankruptcy, so although it isn't specified in public records how much Octomom owes and to whom ... it's clearly a lot.
And she's flat broke. Her house, which was in such horrendous condition last week that police investigated her for child endangerment, will be auctioned off.
Suleman has struggled with her finances for years, which isn't a big shock if you do the quick math: 14 kids + 0 jobs + 0 partner = deep financial crap.