Dina Lohan, mother of actress-entrepreneur Lindsay Lohan, filed for bankruptcy protection Monday in order to stave off a house-foreclosure auction.
The Chapter 13 reorganization filing in U.S. Bankruptcy Court, Eastern District of New York, Central Islip Division, provided to Newsday, lists debts of $1.578 million, most of it composed of $1.554 million owned to lender PennyMac Loan Services. The family home on Old Mill Road in Merrick has $1.272 million outstanding on its mortgage.
Additionally listed are $4,651 owed in California state tax and $9,139 in New York State tax, as well as a little over $10,000 each to Thrift Investment Corp. for a Honda and to the private St. Anthony High School in South Huntington. Another $45,051.74 is owed to the IRS for 2012, 2013 and 2015 federal income tax.
"The nature of this initial filing was to the stop the sale of the house occurring today," said Lohan's attorney, Daniel Straffi Jr., referring to the two-story, 4,119-square-foot house built in 2004. Three of Lohan's adult children, Lindsay Lohan's younger siblings, also variously live in the home. "This is a reorganization, and it's about trying to save the house, ultimately."
The filing's dollar figures are preliminary, said Straffi. "Ultimately each creditor that is on notice of the case will be filing a proof of claim, which we will have the opportunity to review and potentially challenge in the event that we would have any dispute with those numbers."
In April a judge had ordered the house sold at auction due to a mortgage-loan default.
Bankruptcy protection "is a federal right and that's what it's here for," said Straffi. "Dina has a large following and the fact she is being proactive can be somewhat inspirational to other folks feeling the same distress."