Lenny Dykstra, Jim Cramer's Top Stock Picker, Files for Bankruptcy

On Tuesday, 46 year old Lenny Dykstra filed for bankruptcy. He claimed $50,000 in assets and liabilities somewhere between $10 million and $50 million according to a Tuesday filing with the U.S. Bankruptcy Court in the Central District of California.

Jim Cramer said Lenny Dykstra was one of the best stock pickers in the world and one of the very few he would listen to.

Here is the Jim Cramer interview telling how good Dykstra, aka "Nails" was at picking stocks.
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According to the REUTERS story:

• "the event triggering the bankruptcy filing was a planned foreclosure sale of a southern California residence that Dykstra bought from hockey legend Wayne Gretzky for $17.5 million in 2007."
  
• "according to the bankruptcy petition, Dykstra's largest unsecured creditors include units of JPMorgan Chase & Co, owed $12.9 million, and Bank of America Corp, owed a combined $4.2 million."
• "According to an April article on ESPN.com, Dykstra put his net worth at $60 million, and also owned a black Rolls Royce Phantom and Gulfstream II jet."

I watched Dykstra talk about this on CNBC. He said he was told he could refinance later on at an "affordable rate" so he is going to sue the banks that gave him the loans and refuse to give him an affordable loan. It sounded to me like the value of the property fell and he could not get a loan at a lower rate like many others that are under water with real estate.