I read Robert Frank’s article on the Wall Street Journal last week and had to share with you the story it told. Apparently last summer a Seattle real-estate tycoon, Michael R. Mastro filed Chapter 7 bankruptcy with liabilities of $570, 000,000.  And now here comes the interesting part of the story. After filing he went on vacation to Italy, Paris, Switzerland, New York, Palm Springs, Calif., and Jackson Hole, Wyo. He dines at the ritzy Seattle restaurant Canlis for $2,900 per meal. He drives a Rolls-Royce and Bentley, which cost $8,000 a month. To top it off he continues to live in his $15,000,000 home.

Mr. Mastro’s attorney told the Seattle Times that some of the money comes from his friends and his wife and some from the earnings he has made as a real-estate consultant since the bankruptcy filing. According to the trustee for the bankruptcy, James Rigby, Mr. Mastro is hiding assets and wealth from creditors. “As part of the bankruptcy case, he is going after Mr. Mastro and his assets to try to recover money for Mr. Mastro’s investors,” Robert Frank reports.

To some extent Mr. Rigby succeeded in ferreting out some of the hidden assets. Agents found 10,000 one-ounce silver coins in a wall behind a furnace vent in Mr. Mastro’s son’s basement. And surely there are other undiscovered assets. The case will probably take a long time to resolve.

This story should give you a fairly clear picture of how many wealthy people handle bankruptcy. They have more opportunities to shift their wealth in such a way as to keep it safe from creditors. Obviously, I am not suggesting anyone behave in this manner, but I am sharing what bankruptcy can look like for the rich and famous.

If you have any questions or are considering filing bankruptcy please feel free to contact me. Kevin D. Heupel, Colorado Bankruptcy lawyer, 303-955-7570, COBankruptcyHelpEmail, free-consultation form. I will answer your questions without obligation. Remember, I am here to help.