Another Real Housewife Files for Bankruptcy—But Why Is John Travolta Partly to Blame?

New York Housewives star Sonja Morgan files for Chapter 11 in Manhattan after a film venture starring the big-screen actor failed to take off

By Marianne Garvey Nov 18, 2010 4:20 PMTags
Sonja MorganJoe Corrigan/Getty Images

Another Housewives star has no real money.

Real Housewives of New York castmember Sonja Morgan filed for Chapter 11 protection yesterday in Manhattan. It's no small debt, either.

Morgan listed herself as being nearly $20 million in the hole on the bankruptcy petition and claims she's at "a crossroads" in her life.

Now WTF does John Travolta have to do with this?

Morgan listed $19.8 million in debt and $13.5 million in assets in her filing and added in court papers that the decision to file was "not an easy one." But she isn't taking full responsibility for her financial woes and is placing the blame elsewhere.

Which brings us back to Travolta. 

The reality star, who joined Housewives in its third season, says a failed venture between her production company, Sonja Productions, and another company, Hannibal Pictures, Inc. is what destroyed her financially. The company, with Morgan's backing, was supposed to make a movie with Travolta called Fash Flash to Bang Time, but it never got off the ground.

Apparently, Travolta had some movie-star demands that Morgan could not meet, resulting in Hannibal Pics filing a suit against her and winning a $7 million judgment. 

Morgan has filed an appeal. 

The self-titled "socialite" has signed on for another season of the show, but no word on if she'll be living in her lavish Manhattan townhouse. On her website, Morgan claims her friends are royals, designers and celebrities. She also brags that she can whip up a gourmet meal for under $20. (Which should come in handy now.)

Morgan joins RHNJ'sTeresa Guidice in the reality show bankruptcy club. Guidice was forced to put her beyond-her-means home on the market after filing for bankruptcy this past summer.