Famous Chapter 7 bankruptcies of 2013

As 2013 comes to a close and we ring in the new year of 2014, many of us reflect on the happenings of the closing year. Many big events are recalled from our memories, including the famous Chapter 7 bankruptcies of 2013.

Mississippians will probably recall that several people in the spotlight decided to file for bankruptcy this year. Here are just a few. First, there is the comedian known as Sinbad. He filed back in April, struggling with debt. He thought he could put off filing for Chapter 7 bankruptcy by hopefully landing a new movie role, but things did not pan out as expected. Ultimately, he proceeded with the bankruptcy and got a fresh financial start. The bankruptcy court discharged many of his debts, including over $8 million owed to the Internal Revenue Service.

Casey Anthony, the woman acquitted of murdering her two-year-old daughter, also filed for Chapter 7 bankruptcy last year. Her largest debt owing was to her attorney in the amount of about $500,000.

One other noteworthy celebrity, who filed for bankruptcy, was Kelly Rutherford -- the star on Gossip Girl and Melrose Place. After reviewing her petition, the court also decided to discharge her debts. She listed about two million in debts and $23,000 in assets.

It can often be difficult for a Mississippian, as it was for these people who are in the limelight, to admit that bankruptcy is necessary -- especially because it can be overwhelming to have to disclose all of your financial information. But in the end, bankruptcy can be the best solution.

There are definitely many considerations and requirements with Chapter 7 bankruptcy. Filing a petition and disclosure of assets and liabilities is a key aspect. In particular, a petitioner must disclose all creditors and their claims as well as the source of all income.

Collecting and disclosing this information can be daunting, but ultimately rewarding. Filing for Chapter 7 bankruptcy can free a Mississippian from most of his financial challenges.

Source: moneytalknews.com, "6 Famous Bankruptcies of 2013," Karla Bowsher, Jan. 6, 2014

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