What seemed to be a better change of luck for Eddie Montgomery (Pictured Above, left) bottomed out on him last month, as he has filed for bankruptcy.
According to the Lexington Herald-Leader, Montgomery filed for Chapter 7 protection on December 31, listing a staggering $13.4 million in liabilities and just $1.9 million in assets.
Most recently, Montgomery said goodbye to his Kentucky steakhouse that he and his ex-wife opened in 2009. The restaraunt is scheduled to be auctioned off to help settle $12.7 million in defaulted debts to Central Bank & Trust.
The bank will also take possession of Montgomery’s interest in a house on 237 acres in Boyle Country that he owned with his ex-wife. His bankruptcy filing lists $8.4 million in claims, many relating to the failed business, for which Montgomery reportedly personally guaranteed the loans.
“Due to his divorce and the restaurant closure, Mr. Montgomery filed for Chapter 7 relief to address these ongoing issues,” the singer’s attorney, Jamie Harris, tells the Herald-Leader. “It is very common with individuals dealing with divorce and business closure to have to seek out bankruptcy relief.”
No official statement has been released from Montgomery at this point.
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