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Gary Busey Files for Bankruptcy with $1M in Debt, $50K in Assets

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By Andrew Chow, Esq. on February 09, 2012 4:04 AM

Actor and reality TV star Gary Busey has filed for bankruptcy -- a move his publicist likens to that of other "great American institutions" like General Motors and American Airlines.

Sounds like he may be looking for a bailout.

Busey, 67, may be considered a Hollywood icon, but his brand isn't what it used to be. While Busey once starred in blockbusters like 1987's "Lethal Weapon," he's more recently been seen on reality TV shows like "Celebrity Wife Swap" and "Celebrity Rehab."

Now Busey is seeking Chapter 7 bankruptcy protection, the website TMZ.com reports.

Busey has between $500,000 and $1 million in debts, court filings show -- but less than $50,000 in the bank.

Gary Busey's bankruptcy filing shows he owes money to a wide range of creditors. They include the IRS, assorted attorneys, a Los Angeles-area hospital, Wells Fargo Bank, and the Los Angeles County water department, according to ABC News.

Perhaps also coming after Busey's money, according to his filing: Carla Loeffler, the woman who sued Busey in November after he allegedly attacked her at an airport in Tulsa, Okla. Loeffler's suit is pending.

Chapter 7 bankruptcy, also known as liquidation, allows Busey's assets -- what's left of them, anyway -- to be sold and divvied up to pay off his creditors. Chapter 7 requires a bankruptcy trustee to meet with creditors to discuss liquidation, usually within 40 days of filing. That's likely the next step in Busey's case.

Gary Busey's bankruptcy marks a turning point for the actor, his publicist said in a statement. Busey is "jettisoning the litter of past unfortunate choices ... to enable the start of a new and clear path toward peace, happiness, and success" with his girlfriend and their young son, Busey's publicist said.

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