EXCLUSIVE: Michael Jackson’s Former Doctor Arnold Klein – Chapter 7 Bankruptcy Finally Coming to Close Following 6 Years in Court
The Dirty can exclusively reveal Michael Jackson‘s former doctor Arnold Klein‘s Chapter 7 bankruptcy is finally coming to an end following nearly 6 years of the trustee attempting to pay off the late physician’s massive amounts of debts … and the former employee who accused him of sexual harassment won’t receive a dime from the estate.
Back in 2011, Klein filed for bankruptcy stating he had assets totaling $6 million and liabilities in the amount of $8.4 million … and was drowning in debt to various creditors.
MJ’s former physician did not make things easy for the trustee of the bankruptcy over the years with Klein accused of hiding or refusing to hand over many of his valuable possessions … and at one point an arrest warrant was issued for his arrest for failing to hand over hundreds of pricey artwork and a luxury car to the trustee.
Arnie passed away in 2015 of natural causes. The bankruptcy has been still pending following his death with the trustee figuring out how to wrap up the case.
Then on April 3rd, the trustee in the case file his final report in the bankruptcy. The final report shows receipts of $1,684,682 and disbursements totaling $1.3 million leaving a balance of $383,254 leftover. The majority of his creditors including Bank of America, Chase Bank, American Express and the Franchise Tax Board will receive a small percentage of their claims against Klein’s estate.
The trustee says he was able to pull in $1.4 mill during the case in cash, $10k from the sale of household goods, $61k from a fraud/embezzlement suit against a Muhammad Khilji, $3,096 from the sale of Art from his collection valued at $7.2 million, $4k from the sale of a Cadillac Escalade etc.
Jason Pfeiffer, Klein’s former employee, who accused the doctor of unpaid wages and sexual harassment will receive nothing due to him withdrawing his claim against the estate.
The bankruptcy will be closed officially by the judge … following nearly 6 years of the trustee trying to pay off Klein’s massive debts.