Teutul has been struggling for years to get out from under a mountain of debt, and the fight is not over. In spite of finally selling his upstate New York mansion, Teutul still has more debt than he can pay, and according to a report by The Blast, that may have him in even more trouble.
Teutul owes $16,968.70 to JTM Motorsports, a creditor that did some specialty work for him last year. According to new court documents, a federal bankruptcy judge has found Teutul in civil contempt for failing to pay JTM. He is reportedly breaching a settlement deal that he and the company reached.
The debt stems from a 2009 Chevrolet Corvette ZR1. Teutul brought it to JTM for modifications in August of 2018, shortly before he filed for bankruptcy. The garage completed the work on the car with the understanding that they would get air time on one of Teutul's TV shows in addition to payment. However, neither came to pass.
According to JTM, they have sunk far more than the $17,000 Teutul owes them into the car. The company claims it spent $24,000 on parts for his Corvette and performed another $26,000 worth of labor. The company also wanted $10,000 in storage fees for the prolonged time Teutul left the car in their care. Ultimately, JTM tried to auction off the Corvette to make back its money.
JTM has been actively involved in Teutul's bankruptcy proceedings as the company seeks payment. The reality star reportedly agreed to pay $30,000 out of an escrow account by a certain deadline, but failed to do that as well. Since then, the auto shop has been looking to have Teutul held in contempt of court, and this week it finally got that wish.
Teutul has still not admitted any fault in his dealings with JTM. His Corvette is still at the garage, and he reportedly intends to pick it up later this month. The company agreed to waive storage fees from his debt as part of the agreement.0comments
Teutul filed for Chapter 13 bankruptcy in New York last year. The 68-year-old reality star claimed to have $1,801,729 in assets and $1,070,893.44 in liabilities at the time. It took him years and many price cuts to find a buyer for his mansion in upstate New York, where his house is far above the average size and price for his neighborhood.