Credit: Lifetime

Dance Moms star Abby Lee Miller has always made it appear that both she and her competitive dance company were very successful, both at competitions and financially. But it’s now come to light that the outspoken Lifetime reality star has actually been dealing with money issues for a few years now — just emerging from bankruptcy at the start of the new year.

According to legal paperwork obtained by TMZ, the Pittsburgh-based dance instructor filed for bankruptcy way back in December 2010 (before Dance Moms even premiered). At the time, she claimed assets amounting to $325K.. though she owed more than $400K. The source of her debt was mostly real estate, including the building where she runs her dance company. She defaulted on a $245K home mortgage, as well as $106K towards her dance studio.

The documents reveal that issues stemmed from her inability to keep up with real estate taxes. At the time, she was even facing foreclosure on the property. Luckily, in 2011 Abby Lee got her big break, thanks to Lifetime, and she began earning back the money she needed to keep the studio.

Three years later, Abby Lee is fully out of the hole. We’re very happy for this tough lady.. even if she makes little girls (and their mothers) cry on the regular. It’s just surprising that it’s taken this long for this to come out!

Are you surprised by Abby Lee’s financial issues? Tell us what you think in the comments below.

Source: TMZ

Samantha Lear is an Assistant Editor at Wetpaint Entertainment. Follow her on Twitter and Google+!