No one wants to have more debt than they can handle, but unfortunately for some, it is a reality. Some find a way to manage their debt and eventually pay it off, while others are forced to seek legal relief from their creditors through a Chapter 7 bankruptcy filing. Interestingly enough, it's not just the average Joe Schmo who could have problems making ends meet; many a celebrity has generated more debt than income. Our Chicago readers may be interested to know that a former pop star has recently sought legal assistance because he can no longer afford his debts.
Aaron Carter, former teen pop star and brother of Backstreet Boys member Nick Carter, recently filed a Chapter 7 bankruptcy petition seeking protection from creditors. According to his petition, he only has roughly $8,000 in assets, income of $1,998.75 and monthly debts of $2,005. In addition, he owes $1.4 million in back taxes to the IRS and has an American Express credit card bill in the amount of $31,166. His total personal liability is said to exceed $2.2 million.
Carter shot to fame on his own accord with a triple platinum album, Aaron's Party (Come and Get It). He opened for his brother's band and Britney Spears, and was romantically linked to several female teen stars. But the star claims he's living a different lifestyle now, one that doesn't include parties and extravagances. His focus is on performing and reviving his career. He's hoping that the bankruptcy filing will help him revive his credit as well.
Filing for bankruptcy isn't a decision that should be made at the spur of the moment or treated lightly, but for many, it is a way out of a desperate and hopeless situation. For those who are desperately seeking relief, speaking with a legal professional well-versed in bankruptcy law could help a person find the relief they seek and receive the fresh start they desperately need.
Source: Huffington Post, "Aaron Carter Files For Bankruptcy, Claims He Only Has $8,000 In Assets" Cavan Sieczkowski, Nov. 21, 2013