"Gossip Girl" actress files for chapter 7 bankruptcy

Supporting a family is significant a responsibility. This is particularly true when children become a part of the picture. At times it may seem like the cost of raising a child today in Mississippi presents serious financial challenges, but the costs of raising a child can be even more magnified in times of divorce.

The divorce battle of Kelly Rutherford, a former actress of the famous show "Gossip Girl," should remind Mississippians that everyone experiences these realities - even members of Hollywood. And, in fact, sometimes those individuals, who are seemingly well-off, also need to rely on such tools like filing for Chapter 7 bankruptcy to gain a fresh financial start.

The actress reportedly faces an overwhelming debt of over $2 million, which has accumulated from her divorce and child custody battle as well as tax and loan issues. She also has a significantly reduced salary; she once made over $400,000 per month while working on the show and now only has a monthly income of $1,300. To combat her financial struggles, she decided to file for Chapter 7 bankruptcy.

Many Mississippians who are in similar break-up situations may be wondering what effect bankruptcy has on child support orders. Although many debts can be discharged in bankruptcy, child support usually cannot be discharged. However, the bankruptcy proceeding can be a ground to stay the payment of amounts owed or even lead to a modification to a child support order.

Bankruptcy is a tool that can offer debt relief. It is a tool upon which every consumer can rely.

Source: Nydailynews.com, "Kelly Rutherford files for bankruptcy after costly divorce, custody battle," Zayda Rivera, June 24, 2013

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