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Lenny Dykstra Claims He's 'Living in His Car,' Blames Insurance Agency

Posted Aug 27, 2009 4:15PM By Pat Lackey (RSS feed)

Filed Under: MLB Biz

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Lenny Dykstra in his playing daysIf his looming court date before a bankruptcy judge next week wasn't enough, CNBC reported earlier this week that Lenny Dykstra is apparently living in a car as he battles Fireman's Fund, the agency that's insured both of his multimillion dollar mansions.

Currently, one mansion is uninhabitable because of a mold problem while the other has been torn up to repair water damage, which Dykstra says was done at the request of Fireman's Fund, something that they're completely denying.

According to the report, Dykstra is now fighting with Fireman's both over the current condition of the mansion and to get them to provide him with a temporary residence, which they're refusing to do because they've already provided one to his estranged wife, who's name is on the joint account. This is the same reason that the house with the mold problem is sitting in disrepair; Fireman's has set the money aside but because they're no consensus on who to write the checks to, the house is just sitting there.

Just as when he filed for bankruptcy and claimed mortgage fraud, Dykstra is now railing against insurance agencies and blaming them for these problems. Even worse for him, these problems are almost certain to mount even higher next week as during his last bankruptcy hearing, he was ordered by the judge to place both of his houses for sale. Obviously he's done that for neither house, as they both neglected while he fights with Fireman's Fund.

The CNBC report says that this means it's very, very likely that Dykstra's bankruptcy will be transferred from Chapter 11 to Chapter 7. This means that rather than being able to reorganize his businesses to help pay his debts, they would be shut down and his assets would be liquidated. This is not quite the picture painted by his lawyer in July when Dykstra filed. If you'll recall, at the time he assured everyone that Dykstra would "emerge from Chapter 11 and make those people whole who do have legitimate claims."

if you're keeping track at home, Dykstra was supposedly worth somewhere in the neighborhood of $60 million in 2008. Things started going down hill early this year when he was accused of failing to pay his personal pilots. As his financial empire collapsed around him, he was accused by a former employee of being one of the worst individuals in the history of life in this galaxy. And then of course, there's the whole filing for bankruptcy thing, which led to a judge ordering him to sell both of his houses while he reorganized to pay his debts. And somehow, even though he's failed to put either house for sale this whole saga leads to him sleeping in a car.

Now, let's keep in mind that it's still possible that Dykstra was, as he claims, a victim of mortgage fraud that's now been subjected to unfair treatment by his insurance company. Every time one of these stories comes out about him, though, that seems a little bit less likely.

Tags: Lenny+Dykstra, LennyDykstra

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