A federal bankruptcy court in New York issued a debt discharge order for barred Thoroughbred trainer Richard E. Dutrow July 20.
Dutrow, the GI Kentucky Derby-winning trainer whose long history of racing infractions resulted in a 10-year suspension that is currently in effect until 2023, had filed for Chapter 7 protection with the United States Bankruptcy Court for the Eastern United States on Apr. 4.
Dutrow's filing claimed he had zero income and total liabilities of $1.763 million. According to Equibase, Dutrow-trained horses earned more than $87 million between 1979 and 2013.
The 57-year-old former trainer of 2008 Derby winner Big Brown (Boundary) also filed that he was unemployed, did not own or lease a vehicle, and had access to only $50 in cash and $12.50 in a joint checking account with his former wife.
An explanation page accompanying the order said that, “This court order grants a discharge to the person(s) named in the order. This order does not close or dismiss the case, and it does not determine how much money, if any, the trustee will pay to creditors. The discharge prohibits any attempt to collect from the debtor(s) a debt that has been discharged…. However, a creditor may have the right to enforce a valid lien, such as a mortgage or security interest, against the debtor's property after the bankruptcy, if that lien was not avoided or eliminated in the bankruptcy case.”
Two racing-related entities were among the 38 creditors listed as being owed money: Stanley Penn & Sons Feed, Inc., located near Belmont Park, had already won a court judgment against Dutrow for $228,296. The New York State Racing & Wagering Board was listed twice in the filings in the creditor section, once for $30,113 and another time for an “unknown” dollar amount.
The initial filing stated that Dutrow owed a $1,304,817 mortgage on a home he bought in 2006 in East Norwich, New York. On the same day as the discharge order, the trustee in the case filed notice with the court that a contract is in the works to sell Dutrow's real estate but is awaiting short-sale approval from the lender.
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