“Gossip Girl”, Kelly Rutherford, Files Bankruptcy

Written by: Robert DeMarco
Kelly Rutherford [“Rutherford”], one of the stars in The CW comedy Gossip Girls, has filed for chapter 7 bankruptcy relief in the United States Bankruptcy Court, Central District of California; Bankruptcy Case No. 13-23196-BB. The bankruptcy case was filed on May 20, 2013, and is the result of a tumultuous custody battle with her former husband, Daniel Griesch [“Griesch”], currently a resident of Monaco.
Rutherford’s bankruptcy schedules reflect she has very little other than a checking account ($11,441.00) and some clothing and household goods ($10,000.00).  The actress has no real property and apparently, does not even own a car.  That being said, she did manage to earn almost $500,000.00 per year for the last couple of years, from her production company, Ollie Bagollie Productions, Inc., as reflected on her statement of financial affairs.  Her income during 2013 has been nominal, comparatively speaking, averaging approximately $14,000.00 per month with no income during the last few months.
Unfortunately, most of her income appears to have been expended on divorce lawyers and other family law experts in connection with a variety of custody and dissolution battles over the last 5 years (Rutherford commenced divorce proceedings in December, 2008, and was divorced from Griesch in July, 2010).  Rutherford’s divorce counsel, Meyer, Olson, Lowy & Meyers, LLP, and others [ collectively, “MOLM et al”] recently filed a motion with the California Bankruptcy Court for effectively a “comfort order” wherein MOLM et al requested permission to continue their pursuit of legal fees and expenses due and owing them from their representation of Rutherford during the hotly contested custody fight.  Court documents reveal that MOLM et al parties are owed approximately $1.8 million, collectively.  Of that $1.8 million claim, it appears that Rutherford has paid approximately $600,000 of it, as her bankruptcy schedules list a remaining obligation due and owing to MOLM et al of $1.2 million.  Oddly, Rutherford’s bankruptcy schedules fail to list any claim she may have against Giersch for reimbursement of the remaining fees and expenses.
The custody battle, is not, however, Rutherford’s only financial challenge.  She owes the states of California and New York over $86,000.00 for income taxes and the Internal Revenue Service more than $270,000.00 for income tax.  Further, she has managed to incur credit card debt in excess of $79,000.00.
If you are facing financial challenges stemming from a divorce, custody issues, or dissolution of property claims, bankruptcy may be a viable option, and the lawyers at DeMarco•Mitchell, PLLC, are here for you. Feel free to call or email us for a free initial consultation to discuss your financial condition and how we can help.
DATED:  June 23, 2013