Five years after Sonja Morgan of "The Real Housewives of New York" filed for bankruptcy, her legal woes are finally over as creditors got paid and the reality star gets to keep her New York townhouse.
"It's over now. It's come to an end," said Morgan to E! News. "It was $7 million judgment but with the administration fees, it was about another $2 million."
The reality star also told the website that she is out of Chapter 11, a chapter of the Bankruptcy code that proposes a plan of reorganization to keep a business alive and pay creditors over a period of time.
According to the Wall Street Journal, Morgan's bankruptcy exit plan went into effect last week by paying off creditors and allowing her to close out her case. The bankruptcy plan took effect on June 9, after a brief extension of the payout date as attorneys reportedly waited for Morgan's check from Bravo to clear.
The reality star told E! News that although it wasn't easy, she was able to pay what she owed and that it was an experience.
"It's nice to be free of everyone looking at my money. I finally have my financial privacy back," she said.
The Bravo star cited a failed venture between her production company, Sonja Productions, and another company, Hannibal Pictures, Inc., as the cause of her financial woes. The company, with Morgan's financial backing, was supposed to make a film starring John Travolta called "Fash Flash to Bang Time," but it never got off the ground.
To pay off her debts, Morgan had to liquidate some of her assets which include property in Ramatuelle, France, for $5.7 million, $1.2 million from her savings, and she took a $3.3 million mortgage on her New York home.
Now, the star is moving forward as she is now focused on starting a new business.
"I'm looking forward to building up my business of fine jewelry, evening wear, sportswear, and swimwear," she said.
Her new website, SonjaMorganNewYork.com, is now open and has begun taking pre-orders for a range of dresses, tops, jackets, and swimwear.
