Duane Martin & Ex-Wife Tisha Campbell Finally Put 8-Year-Old Bankruptcy Case To Rest

Duane Martin and Tisha Campbell have finally settled their long-standing bankruptcy case, marking the end of an eight-year legal battle.

The trustee overseeing their Chapter 7 case reportedly filed a final report on July 16. This case dates back to March 2018, when the former couple faced accusations of hiding $50,000 in residuals from the bankruptcy trustee. 

The trustee claimed at the time that they improperly diverted Campbell's earnings, leading to demands for sanctions. 

The former couple closed the chapter on their lengthy bankruptcy case with a major financial clean-up in the process. 

After years of legal proceedings, the exes federal tax debt was largely resolved, thanks to over $2 million raised from the sale of their home, along with additional funds from security deposits, former business sales, and residuals.

Court documents obtained by InTouch reveal that not everything went smoothly—$222,000 worth of assets were abandoned, and $91,000 was marked as exempt. 

Despite the complexities, Martin and Campbell made a final $1.7 million distribution to creditors and discharged $16 million in claims. Their assets were carefully tallied, with items like vehicles and household goods listed.

The ex-couple's 2014 Range Rover and 2016 Jeep Wrangler were among the assets noted, along with $15,000 worth of furniture and $2,500 in jewelry. 

The former pair's bankruptcy case has officially ended, but not without revealing the staggering financial challenges they faced.

Their petition, initially filed in January 2016, disclosed over $15 million in liabilities, including more than $9 million owed to the City of Los Angeles for personal guaranties and tax debts.

In addition, they were burdened with $500,000 in company loans and $400,000 from other financial commitments. They also struggled with significant personal property and real estate liabilities, amounting to $65,000 and $248,000 respectively. 

At the time of the filing, the duo reported a monthly income of $7,655 but were contending with monthly expenses of $17,000, with only $200 in cash and $173 reportedly in their bank account.

The conclusion of Martin and Campbell's case has been a long time coming. In 2018, their financial woes intensified when they were accused of hiding $50,000 in residuals from the bankruptcy trustee.

As The Blast reported, a settlement was reached in 2016. It required Campbell to surrender all residuals earned after the bankruptcy filing, with the option to buy back her rights for $125,000.  

The ex-couple initially sought to buy back these rights for $125,000, but soon after submitting the payment, they claimed the amount should be applied to remaining residual obligations. 

However, the trustee claimed the couple concealed Campbell's $50,000 in residuals and accused them of attempting a "bait-and-switch" scheme. Ultimately, the trustee filed to sanction them.

Before resolving their bankruptcy case, Martin and Campbell resolved another major issue. In 2020, the couple finalized their divorce, officially ending their marriage after a public and tumultuous battle.

As revealed in court documents obtained by The Blast, the stars were declared single before outlining other issues. The ruling granted the former couple joint legal and physical custody of their son, Ezekiel, with an agreement to avoid making derogatory comments about each other in his presence. 

Given the tumultuous nature of their split, maintaining this arrangement might have been challenging, but the court had set clear terms for their co-parenting journey.

After over two decades of marriage, Campbell filed for divorce from Martin, citing irreconcilable differences. The split, which was listed as Christmas Eve of 2017, came after years of mounting financial and personal issues.

The mother-of-two revealed a history of physical and emotional abuse, claiming that Martin had been abusive for years, with an incident occurring in 2019. She was granted a temporary restraining order, accusing Martin of grabbing her arm and trying to force her into a bedroom.

The 56-year-old alleged that she had kept the abuse hidden from friends and family for years, sharing in an emotional affidavit that the violence began shortly after their 1996 wedding. In the statement, she explained:

"I had been emotionally, mentally and physically abused. I kept things hidden from my family, his family, our friends, and the public, save a few very close friends and people who may have witnessed, over the past two decades, filing it away in the back of my mind to protect my family, the community and the public's persona of my spouse."

While the case dragged on for years, the final resolution marks a fresh start for Duane Martin and Tisha Campbell.