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Eddie Montgomery files for bankruptcy protection

When a person amasses a large amount of debt, sometimes the best course of action is to seek protection from the legal system. If the debt is business-related or related to personal reasons, filing a Chapter 7 bankruptcy case stops creditor harassment and gives the person a chance to regroup and possibly get a fresh start. Readers in Chicago might be interested to hear about how a country singer is trying to overcome a large amount of debt stemming from several recent events.

Eddie Montgomery, bother of John Michael Montgomery and half of the duo Montgomery Gentry recently filed for Chapter 7 bankruptcy protection. According to the filing, he has listed assets of $1.9 million but liabilities of $13.4 million.

The singer's financial problems stem from a failed business venture and a divorce. He opened the Eddie Montgomery's Steakhouse but the business failed and closed suddenly last May. The restaurant is scheduled to be sold on Jan. 10 and the proceeds will be used to pay off some of the $12.7 million in defaulted loans related to the failed business venture.

He also has property that is being sold as part of the divorce proceedings and his portion of the value will be applied to the debt. However, there will still be creditors that are owed money, so the bankruptcy procedure will proceed to erase that debt.

For anyone who has debts that exceed their assets, bankruptcy can allow a person to get a fresh start and allow them to rebuild their financial life. Seeking guidance from an experienced legal professional can help anyone who needs this kind of assistance figure out the best course of action.

Source: Lexington Herald-Leader, "Country singer Eddie Montgomery files for bankruptcy" Janet Patton, Jan. 02, 2014

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