Just one day after Nadya "Octomom" Suleman insisted "I am making money" and could afford a $520 haircut, she claimed Chapter 7 bankruptcy. The single mom-of-14 filed in federal court on Friday, three days before her graffiti-covered La Habra, California, home was set to hit the auction block because she hasn't made a mortgage payment in a year. In the court papers, the 36-year-old listed her assets as $50,000 and her debts up to $1 million. Amongst her creditors: Verizon Wireless, bottled water company Sparkletts, Indy Mac Mortgage, Orkin Pest Control, the Department of Motor Vehicles, a Christian school, and the gas, electric, and water companies. "I have had to make some very difficult decisions this year and filing Chapter 7 was one of them," Suleman, who is on welfare, said in a statement on Monday. "But I have to do what is best for my children and I need a fresh start."

Suleman's filing postpones the auction of her home, but not for long. Amir Haddadin, the man who loaned Octomom $450,000 so she could buy the residence, tells RadarOnline that the new date is May 7. As for her going bankrupt, he adds, "This is not surprising … and now the bank will have to deal with it." But although he would like to recoup the money he lost for giving Suleman and her 14 children a place to live, Haddadin doesn't want to see them homeless. "I feel so sorry for those children and I worry about them. What kind of life are they living now? Going to the bathroom in the backyard of the house in portable toilets -- they aren't animals. Does Nadya realize that? Truly, what kind of life can these children have with her as a mother?"

The same day as her filing became public, Suleman said in an interview with HLN that she would consider doing porn — something she always said she would never do — if it meant earning money to take care of her large brood. "You know if the opportunity comes up I'll be the first to admit, I'm gonna eat my words!," said Octomom, who posed topless for a measly $8,000 in March. "Because all that matters is that I can take care of my family. If it's a job, and it's a well-paying job, and it's gonna allow me to get out of here and move [my kids] into a very safe, huge home that they deserve … I'm gonna do it."

Last week, Suleman's hairdresser went to police with photos she took of what she claimed were the octuplets — dirty and only dressed in T-shirts and diapers — using training potties in the backyard because the toilet in the house was broken. CPS did pay a visit to the home, but after a 90-minute inspection the staffers didn't feel the children were in any real danger.

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