Marshack said the bankruptcy dragged on partly because he believed the Quaids did not list all their assets properly and a proceeding continued to deny him a discharge from his liabilities. The 35 creditors listed in the bankruptcy filings include American Express, New York State Department of Tax, Citibank, their former law firms that represented them, and luxury clothing companies Bergdorf Goodman and Neiman Marcus.
"We didn't think he disclosed everything that he owned," said Marshack.
The case was settled after five years and the Quaids agreed to pay back 50 percent of everything they owed to their creditors. Marshack said that as a result of the bankruptcy, the actor was able to discharge half of his general unsecured debts, but had to pay in full any tax debts he may have had.
Eventually, the Quaids accumulated other debts since their bankruptcy, including payments to their former private investigator, Becky Altringer.
Altringer said the Quaids hired her to investigate "the mob" that was "out to kill them," whom they believed were responsible for the deaths of the actors Natasha Richardson, David Carradine and Heath Ledger.
"I took the case on because it sounded a little valid in the beginning, but as I started investigating, I realized no one was out to hurt them except Evi," said Altringer from her home in La Verne, Calif.
Altringer said she sued the Quaids for her services totaling about $19,000 during June 2009. She said she began receiving the actor's wage garnishments in October, which residual checks from his previous films. She said she has received over $600 from movie studios such as MGM and Sony.
It is unclear what kind of income the Quaids are currently receiving.
On Tuesday, the Quaids' attorney, Robert Sanger, told the judge that authorities in Canada have confiscated the actor's passport. Randy, who is seeking asylum in Canada, is scheduled to have an immigration admissibility hearing in Vancouver on Nov. 23. His wife is eligible for Canadian citizenship through her Canadian father.
Santa Barbara Deputy District Attorney Anthony Davis said his office was communicating with the Canadian authorities.
"Extradition is always a possibility," said Davis.