Danny Trejo is facing a financial challenge. The actor, who has had a successful career in Hollywood, is filing for bankruptcy. However, the reason behind the filing is not him going broke but instead owing a huge tax to the federal government.
Trejo is currently $2 million in debt to the Internal Revenue Service. In order to resolve the financial issue, he will be filing for Chapter 11 bankruptcy. Read on to know more about the development.
Danny Trejo Filing for Bankruptcy
The 78 year old actor confirmed the development to the tabloid TMZ and revealed that he would file for personal bankruptcy pertaining to Chapter 11. The clause deals with reorganizing assets to help deal with debt.
Trejo stated that he owes $2 million in taxes to the federal government, which he says resulted from mistakenly claiming deductions over the last few years. He even joked that now he realizes dog grooming expenses can not be written off for claiming tax deductions.
Meanwhile, the filing will not impact his business as he is only aiming for personal bankruptcy. Trejo currently owns a record label, some coffee and donut shops, and eight restaurants in his Trejo’s Tacos chain.
The ventures will continue to function normally since these are owned by LLCs and corporations formed by the actor. His restaurants, particularly, are said to be doing extremely well and generating huge revenue. With the filing, Trejo hopes to resolve the tax issue and be debt-free by next year.
The Actor has a Net Worth of $500 Thousand
As we already reported, the actor’s bankruptcy has nothing to do with his net worth. His wealth still stands at $500 thousand. He also owns a number of properties in Los Angeles. He bought a home worth $130,000 in the Pico Rivera area of LA in 1999. In 2012, he paid $550,000 for a home in Mission Hills, California.
Last year, he got a wax statue of himself unveiled at Madame Tussauds. “It was so humbling, and I’m usually pretty good at just winging a speech, but when I saw that, I was just, like, tongue-tied,” he expressed at the time.
Trejo has been in the Industry for Over 30 Years
The actor made his debut as a convict extra in Runaway Train (1985). He then went on to appear in Marked for Death, Desperado, From Dusk till Dawn, The Replacement Killers, Animal Factory, Bubble Boy, XXX, and Anchorman: The Legend of Ron Burgundy.
He also starred in Grindhouse, Urban Justice, Modus Operandi, Machete, Reaper, and Range 15. His character in the film Spy Kids, Isador “Machete” Cortez, got so popular that it was turned into a franchise of its own.
Looking back at his career, Trejo had said in an interview, “I’m the king of independent movies, and I love it! I like doing them because on an independent movie it’s, ‘I pawned my car for this, my mum loaned me the money for this.’ It’s serious stuff. An independent movie is more serious than a billion-dollar movie.”
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