Doubling Down With The Derricos couple Deon Derrico and Karen Derrico shocked their fans by filing for a quickie divorce earlier this month after 19 years of marriage.
TMZ broke the news about the divorce, citing court documents. According to the site, the Derricos filed for divorce on June 4, and it was finalized just TWO DAYS later.
No other news outlets have confirmed TMZ’s reports, and it’s still unclear exactly where the Derricos filed. A records check in the District Court covering Clark County, Nevada where the Derricos live turns up nothing.
Derricos divorce and bankruptcies
Many Doubling Down With The Derricos fans are openly wondering if finances contributed to the Derricos filing for divorce. The couple has a well documented history of financial issues, including five different bankruptcy filings since 2011.
Despite being married, all five bankruptcies were filed individually. I’ve put together a timeline of the Derrico bankruptcy filings below, based on court records.
I’ve also added the amount of liabilities (debt) claimed in each filing, thanks to The Sun’s article from 2021. It’s interesting to note that there are five bankruptcy filings for two people, but they are officially filed under four different names.
Deon D Derrico filed for Chapter 13 bankruptcy in Nevada on October 3, 2011. Deon stated he had liabilities between $500,001 and $1,000,000. The case was dismissed on October 17, 2011.
Derrick Deon Derrico filed for Chapter 13 bankruptcy in Nevada on January 30, 2015. Derrick stated he had liabilities between $100,000 and $500,000. The case was dismissed on March 27, 2015 due to Derrick not submitting all of the required forms.
Derrick Deon Derrico filed for Chapter 13 bankruptcy in Nevada on April 11, 2015. Derrick stated he had liabilities of $600,009.53. (In his previous filings, Deon/Derrick didn’t include specifics about his liabilities.) Deon filed a motion to dismiss the bankruptcy case on February 11, 2016, and the case was dismissed the following day.
Karen Carter filed for Chapter 13 bankruptcy in Nevada on March 31, 2016. According to The Sun, her liabilities were “a whopping $1,009,691.33.” The case was dismissed on August 8, 2016.
Karen Evonne Derrico filed for Chapter 13 bankruptcy on January 24, 2018. Karen’s liabilities were dramatically reduced to $47,567.
The case was changed from Chapter 13 (which reorganizes debt) to Chapter 7 (which discharges debt) and was finalized on on February 7, 2019. This was the only Derrico bankruptcy filing to actually go through.
When can the Derricos file for bankruptcy again?
Given that Karen Derrico’s Chapter 7 bankruptcy was successfully discharged, she has to wait 8 years before she can file for Chapter 7 bankruptcy again.
However, she only has to wait 4 years before filing for Chapter 13 bankruptcy. As pointed out above, a Chapter 13 bankruptcy essentially places a stay on creditors and allows you to reorganize your debt and set up a payment plan. In other words, Chapter 13 is for people in a lot of debt who still plan on paying it back.
In Chapter 7 bankruptcies, many debts are completely discharged. However, assets can be seized and sold to pay creditors as much as possible.
What is unclear is how Deon Derrico is affected by Karen’s successful Chapter 7 filing. Can he file for Chapter 7 bankruptcy less than 8 years later if they are still married? Would being divorced help establish separate finances and make an individual filing easier?
Why did Deon Derrico file for bankruptcy multiple times?
It seems a bit odd that Deon Derrico would file for bankruptcy twice within a three month span in 2015. It’s even more odd that the second filing was dismissed due to a motion from Deon himself.
Just after these bankruptcy filings, Deon Derrico filed a lawsuit against a mortgage company in regards to a property he owned that was foreclosed on. Filings from that lawsuit state one of the bankruptcies put a stay on the foreclosure.
Deon and the issuer of the mortgage went into foreclosure mediation after a notice of default was filed on March 12, 2013. It was determined the property would be foreclosed on and a sale date was set for February 2, 2015.
From court documents:
The sale was delayed by Derrico’s unsuccessful petition for bankruptcy but was eventually held on April 10, 2015. A trustee’s deed of sale to the Trust was recorded on April 13, 2015.
Derrico filed another voluntary bankruptcy petition the day after the trustee’s sale. That case was dismissed, and closed on April 11, 2016. Derrico filed this lawsuit on June 19, 2016.
Deon Derrico lost the lawsuit and the property.
The Derricos and LaTisha Collier
The fact that bankruptcy filings can delay debt collection should not be new information to Starcasm readers. Love During Lockup’s LaTisha Collier admitted in an interview that was a big reason she personally filed for bankruptcy 7 times.
LaTisha appeared to do the same thing with recent bankruptcy filings for her Boss Tax and Accounting Services in order to avoid eviction from their Davenport, Iowa location.
The trustee and judge in the bankruptcy case were very wary of the timing and incompleteness of LaTisha’s filings for her business, especially given her history of filing bankruptcy just to get a stay on debt collection.
The judge threw out the bankruptcy for LaTisha’s business and forwarded her information to prosecutors for a potential bankruptcy fraud investigation. LaTisha was later arrested and charged with felony theft for a separate matter involving a client. LaTisha will return for the new season of Love After Lockup, reportedly premiering on Friday, July 26.
Asa Hawks is a writer and editor for Starcasm. You can contact Asa via Twitter, Facebook, or email at starcasmtips(at)yahoo.com
