Dr. Conrad Murray, the cardiologist who reportedly was in Michael Jackson’s Los Angeles mansion when the entertainer collapsed, is reportedly facing a litany of financial (and legal) problems. Most recently, the doctor who is accused by many of failing to properly care for Michael Jackson, was declared in default on a $132,000 debt related to office medical equipment and services and his home in Las Vegas may be facing foreclosure .
However, Dr. Murray’s problems aren’t limited to his recent financial predicament, according to some sources, he has a long history of financial troubles:
- In June 1992, Murray filed for bankruptcy in the state of California. According to public records, his debt was discharged by the court.
- In February 1993, the state of California placed a lien on Murray for failing to pay $1,578 in state taxes.
- In May 2001, the state of California placed a second lien on Murray for failing to pay $19,457 in state taxes. It was released in December of 2003.
- In April 2003, the state placed yet another lien on Murray for failing to pay $21,084 in state taxes.
- Also in 2003, Murray was one of several defendants named in a civil lawsuit brought by Canada Life Assurance Co. The suit was eventually settled and dismissed.
- In April 2008, the state of Nevada got in on the action, with Citicorp Vendor Finance placing a lien on Murray and his recently searched clinic, Global Cardiovascular Associates. A civil judgment was requested in the case.
Michael Jackson paid Dr. Murray $150,000 a month; but despite that fact he may still need to file bankruptcy. Since his last bankruptcy filing was 17 years ago, he is definitely eligible to file bankruptcy again. Although it is not clear how much income he currently has considering is legal challenges, he may qualify to discharge a significant amount of debt in bankruptcy granted that the debts were not incurred fraudulently.
Bankruptcy may also help Dr. Murray reduce or pay off in a reasonable time, any tax liens against him. And depending on the circumstances of his tax case, some taxes may be dischargeable in bankruptcy. If Dr. Murray’s primary residence is facing foreclosure, he may be able to negotiate with his lender for a modification during bankruptcy and pay off any delinquent balance over time.
Even if Dr. Murray is convicted of wrongdoing in the death of Michael Jackson, he will still have the right to file bankruptcy while imprisoned. Whatever Dr. Murray decides to do about his financial affairs, he needs to seriously consider his bankruptcy options.