A while back I pointed to a soap opera of a story on the Yellowstone Club World crack-up. The high-living husband was splitting from his high-living wife and it was throwing a wrench into the finances.

Apparently that was just the start of the troubles. Now that they’ve run headlong into a credit crunch, Yellowstone Club World filed for bankruptcy. If you read the whole story here it paints a story of an overextended company run by a guy who lives as big as the billionaire members: yachts, planes, Aston-Martins, and Bentleys for a start.

The club was initially just one ownership club in Montanta, but then Tim and Edra Blixseth started “an international replica of the Montana enterprise but with a steep $1.5 million buy-in fee. Over the next two years Tim Blixseth bought a chateau in France, a golf resort in Scotland, a villa in Mexico and an estate in the¬ Caribbean.”

The Mexico part of that equation was Club World Tamarindo in the Costalegre region of Mexico, south of Puerto Vallarta.¬ The club pulled out of that arrangement and it’s now just El Tamarindo Beach & Golf Resort. (Which is good news if you want to be a guest there–it’s less complicated now.)

This shows, once again, the perils of investing big bucks in a project where you are a member rather than a real owner of real property. This is the second major bankruptcy among luxury ownership clubs, after the crash of one marketed by Abercronbie and Kent a few years back. Tread carefully.