In 1990 she received a reported 1 billion dollar divorce settlement. In 2011 she declares Chapter 7.
A socialite and former nude model who became known as 'the wealthiest divorcee in history' after she split from her billionaire husband has declared herself bankrupt.
Patricia Kluge, who had entertained royalty and celebrities at her sprawling Virginia estate in the 1980s and later tried her hand as a winemaker, filed for personal bankruptcy protection with her third husband.
The 62-year-old Briton netted a reported $1 billion after splitting from media mogul John Kluge in 1990.
She splashed out on the lavish 45-room Abemarle House, set on 3,000 acres of land in Virginia.
The one-time star of adult film 'The Nine Acres of Nakedness' became known as the host of extravagant parties attended by the rich and famous.
But the high-living British woman, who was born in Baghdad, has declared herself bankrupt after she crashed financially and her winemaking business failed.
Bankruptcy papers reveal the sad downfall of the former billionaire who has desperately been trying to raise money by selling off her possessions over the last year.
She and her husband William Moses estimate have up to $50 million in liabilities, according to bankruptcy filings.
A lawyer for the couple, Kermit Rosenberg, said: 'They're getting on with their lives, trying to discharge their debts and start over.'
Mrs Kluge acquired the 23,500-square-foot Albemarle House and its 3,000 acres in rural Virginia from her 1990 divorce from billionaire media mogul John W Kluge, who died in September.
It was designed after an 18th-century English country manor with multilevel gardens, fountains, a swimming pool and rustic guest cabin.
In the 1980s, Mrs Kluge hosted opulent events for royalty, corporate chieftains, celebrities and literary figures at the home, which Mrs Kluge once said defined her.
The 62-year-old said last year that she no longer lived that life and instead was trying to focus on a winery business she had sought to create with her new husband.
Four in a bed: Mrs Kluge, second from right, in her early career
The Chapter Seven bankruptcy petition comes after the failure of negotiations with three principal banks, Mr Rosenberg said.
The banks had foreclosed on the couple's winery business, their Albemarle House mansion and a neighborhood of luxury homes under development.
Mr Rosenberg said attempts to 'structure an overall settlement' didn't succeed.
He added the filing places the couple's assets under the control of a court-appointed trustee, who will administer payments to creditors.
Bank of America filed a lawsuit against Mrs Kluge in U.S. District Court in Charlottesville, alleging that Kluge defaulted on three loans worth nearly $23 million on the brick Georgian home and its grounds. The bank purchased the property for $15.26 million.
Nude: Mrs Kruge starred in the adult film 'The Nine Acres of Nakedness'
Divorced: John Kluge reportedly paid his ex-wife Patricia Kluge $1 billion
The couple also lost their Kluge Estate Winery & Vineyard after defaulting on nearly $35 million in loans from Farm Credit Bank during their effort to build a national wine business during the economic downturn.
Reality-television mogul Donald Trump bought most of the business in April, saying he wants to operate the vineyard.
Lender Sonabank took back the couple's upscale Vineyard Estates subdivision for $4.9 million at a January auction after Kluge and Moses defaulted on an $8.2 million loan after few properties on the 511-acre tract had sold.
The couple's current home in the subdivision wasn't part of the sale.
Sad downfall: Patricia Kluge decalred herself bankrupt 21 years after she netted a reported $1 billion after splitting from media mogul John Kluge.
Bought cheap: Kluge Estate Winery & Vineyard was purchased for less than $7.5million, though it was worth more than $70million before the recession
To raise cash for the struggling winery, Mrs Kluge enlisted Sotheby's last June to conduct an onsite auction of furnishings, antiques and other items, which brought in $15.2 million.
An ornate Qing Dynasty Chinese table clock sold for nearly $3.8 million, and worldwide bidders also paid top prices for paintings, furniture and other pieces in the collection.
Mrs Kluge also liquidated much of her jewellery for about $5 million in auction proceeds at a previous sale.
Read more: http://www.dailymail.co.uk/news/art...-history-declares-bankrupt.html#ixzz1Q31krsLw
A socialite and former nude model who became known as 'the wealthiest divorcee in history' after she split from her billionaire husband has declared herself bankrupt.
Patricia Kluge, who had entertained royalty and celebrities at her sprawling Virginia estate in the 1980s and later tried her hand as a winemaker, filed for personal bankruptcy protection with her third husband.
The 62-year-old Briton netted a reported $1 billion after splitting from media mogul John Kluge in 1990.
She splashed out on the lavish 45-room Abemarle House, set on 3,000 acres of land in Virginia.
The one-time star of adult film 'The Nine Acres of Nakedness' became known as the host of extravagant parties attended by the rich and famous.
But the high-living British woman, who was born in Baghdad, has declared herself bankrupt after she crashed financially and her winemaking business failed.
Bankruptcy papers reveal the sad downfall of the former billionaire who has desperately been trying to raise money by selling off her possessions over the last year.
She and her husband William Moses estimate have up to $50 million in liabilities, according to bankruptcy filings.
A lawyer for the couple, Kermit Rosenberg, said: 'They're getting on with their lives, trying to discharge their debts and start over.'
Mrs Kluge acquired the 23,500-square-foot Albemarle House and its 3,000 acres in rural Virginia from her 1990 divorce from billionaire media mogul John W Kluge, who died in September.
It was designed after an 18th-century English country manor with multilevel gardens, fountains, a swimming pool and rustic guest cabin.
In the 1980s, Mrs Kluge hosted opulent events for royalty, corporate chieftains, celebrities and literary figures at the home, which Mrs Kluge once said defined her.
The 62-year-old said last year that she no longer lived that life and instead was trying to focus on a winery business she had sought to create with her new husband.
Four in a bed: Mrs Kluge, second from right, in her early career
The Chapter Seven bankruptcy petition comes after the failure of negotiations with three principal banks, Mr Rosenberg said.
The banks had foreclosed on the couple's winery business, their Albemarle House mansion and a neighborhood of luxury homes under development.
Mr Rosenberg said attempts to 'structure an overall settlement' didn't succeed.
He added the filing places the couple's assets under the control of a court-appointed trustee, who will administer payments to creditors.
Bank of America filed a lawsuit against Mrs Kluge in U.S. District Court in Charlottesville, alleging that Kluge defaulted on three loans worth nearly $23 million on the brick Georgian home and its grounds. The bank purchased the property for $15.26 million.
Nude: Mrs Kruge starred in the adult film 'The Nine Acres of Nakedness'
Divorced: John Kluge reportedly paid his ex-wife Patricia Kluge $1 billion
The couple also lost their Kluge Estate Winery & Vineyard after defaulting on nearly $35 million in loans from Farm Credit Bank during their effort to build a national wine business during the economic downturn.
Reality-television mogul Donald Trump bought most of the business in April, saying he wants to operate the vineyard.
Lender Sonabank took back the couple's upscale Vineyard Estates subdivision for $4.9 million at a January auction after Kluge and Moses defaulted on an $8.2 million loan after few properties on the 511-acre tract had sold.
The couple's current home in the subdivision wasn't part of the sale.
Sad downfall: Patricia Kluge decalred herself bankrupt 21 years after she netted a reported $1 billion after splitting from media mogul John Kluge.
Bought cheap: Kluge Estate Winery & Vineyard was purchased for less than $7.5million, though it was worth more than $70million before the recession
To raise cash for the struggling winery, Mrs Kluge enlisted Sotheby's last June to conduct an onsite auction of furnishings, antiques and other items, which brought in $15.2 million.
An ornate Qing Dynasty Chinese table clock sold for nearly $3.8 million, and worldwide bidders also paid top prices for paintings, furniture and other pieces in the collection.
Mrs Kluge also liquidated much of her jewellery for about $5 million in auction proceeds at a previous sale.
Read more: http://www.dailymail.co.uk/news/art...-history-declares-bankrupt.html#ixzz1Q31krsLw
