Actor Danny Trejo has worked out a deal to save his Los Angeles home from being sold off as part of his bankruptcy, RadarOnline.com has learned.
According to court documents obtained by RadarOnline.com, Trejo and Barclays Mortgage Trust hashed out a private deal that will prevent the property from being foreclosed on.
As we previously reported, Trejo is in the middle of a Chapter 11 case. He listed assets totaling $2.2 million and liabilities in the amount of $3.6 million. The majority of Trejo’s debt was owed to the IRS.
Trejo’s assets include his main home in Mission Hills, Cali. Recently, Barclays accused the actor of missing two mortgage payments following his bankruptcy being filed.
Barclays said the principal owed on the property is $294k. However, it explained the IRS had also placed a $2 million lien on the property.
The company said the home in question is worth an estimated $1.2 million. Barclays asked the court for permission to sell of the home despite the bankruptcy being filed — which automatically pauses a debtor’s pending legal issues and prevents new cases from being filed until the outcome of the Chapter 11.
Trejo objected to the request claiming there was a bookkeeping issue but he was now paid up to date.
Per the deal reached, Trejo will make regular payments of $2,471 on the mortgage. However, if any breach occurs, Barclays will have the fight to bring the matter back to court.
Recently, the actor proposed a repayment plan which would have him make 4 payments of $200k per year until early 2028.
His lawyer did note, “Mr. Trejo’s acting career has over three decades and he continues to be in popular demand for films and other productions and the Debtor contends that therefore is a reasonable likelihood that he will make all payments under the Plan. The entertainment industry, however, is uncertain by its nature and Mr. Trejo’s income is not guaranteed.”
