‘Real Housewives’ Star Sonja Morgan Loses French Villa in Bankruptcy Case

'Real Housewives' Star Sonja Morgan Loses French Villa in Bankruptcy Case

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Trustee sold the villa for far less than the $8 million “The Real Housewives of New York” castmember said she was listing it for

While Sonja Morgan has been putting a positive spin on her bankruptcy proceedings, it looks like things may have been more out of her control than she's admitted. She's talked in the media about considering a sale of her French villa to help her come out of Chapter 11 bankruptcy, listing it for $7-8 million, but her bankruptcy court documents tell a different story.

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Those documents state that it was the trustee in her bankruptcy, which she filed in November 2010 after a $7 million court judgment was filed against her, who made the sale. Not only was the sale for less than Morgan wanted at $5.7 million, but Morgan had no say in the deal at all, according to media reports.

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As detailed in the documents, there were several issues with the property, which is why the trustee wound up selling it for significantly less than Morgan was seeking.

This is just the latest in a disappointing turn of events for the “Real Housewives” star as she tries to pull herself together financially. The initial lawsuit that led to the $7 million judgment was the result of a movie she financed with her then-husband John A. Morgan in 2006 through her company, Sonja Productions. At the same time, her marriage was falling apart, culminating in a 2008 divorce.

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The Hannibal Pictures film, “Fast Flash to Bang Time,” was to star John Travolta. However, Morgan never paid the promise money to back the film, leading to the lawsuit and ultimately the $7 million judgment against her, which was upheld by the U.S. Court of Appeals in 2011. In her bankruptcy filing, Morgan listed her debt at $19.8 million, with her assets at more than $13.5 million.