Although Sonja Morgan filed for bankruptcy after suffering a huge legal and financial setback, The Real Housewives of New York City star denies that she’ll be forced to sell her beloved townhouse.

“Lady Morgan's house is not crumbling down. Being in a Chapter 11 doesn't mean that I cant pay my bills or spent money that I don't have. Chapter 11 is a restructuring of your assets -- not a liquidation,” Morgan wrote on her Bravo blog.

As Breaking Celebrity News previously reported, Morgan was successfully sued by Hannibal Pictures for failure to raise money for a film involving John Travolta — and the reality TV star was forced to file for bankruptcy because of the $7 million judgment — which reached a staggering $8.5 million total with interest and attorneys’ fees included.

“When I was in the movie business I gave hundreds of people jobs, and some at very high salaries. When one movie deal memo went sour, I got this judgment against me and filed the Chapter 11 to protect and restructure my assets.

“It�