Back in September 2011 we posted about a judge granting singer Toni Braxton a bankruptcy discharge. This came after the award winning singer filed for Chapter 7 bankruptcy in 2010. This was the second time the singer had filed for personal bankruptcy. The first time was in 1998.
Debts can quickly spiral out of control. What may start off as just some medical bills and credit card debt, can lead to repeated phone calls from creditors and the threat of wage garnishment. This in turn can lead to people seeking all types of debt relief, including bankruptcy.
When it comes to gymnasts competing in this year's Olympics, 16-year-old Gabby Douglas has quickly become a fan favorite. The teen has already won two gold medals and is the first Africa-American woman to take home the title of winning an all-around gold in gymnastics. And while she could end up earning millions in endorsement deals, the fact that her mother filed for Chapter 13 bankruptcy several months ago highlights the fact that times can be tough for anyone --even for the parent of a gold medal winning Olympic athlete.
In our last post we briefly talked about Chapter 11 bankruptcy, focusing on how many businesses will file for this type of bankruptcy with the hopes of reorganizing debts while still remaining in operation. However, businesses are not the only types to file for Chapter 11 bankruptcy, as individuals do too.
Right now "Octomom" Nadya Suleman is in dire financial straits. She is relying on food stamps and Social Security disability, while also owing up to $1 million to creditors. And, to make matters even worse for the single mother of 14, she is $30,000 behind on rent payments on a home where the owner is also struggling. A foreclosure action on that home is scheduled for next week.
Warren Snapp, who played for the Tampa Bay Buccaneers, recently filed for Chapter 7 bankruptcy in South Florida. This personal bankruptcy filing came after a 13 year career with the NFL and a stint on "Dancing with the Stars."
Anyone can end up needing to file for a personal bankruptcy. And while it happens quite often, some are still shocked when a famous celebrity finds themselves struggling and also needing to file. With so much money, people often wonder just how they ended up with more debts than assets.
Anyone can fall into financial difficulties, even the rich and famous. However, regardless of who the person is, it's important to strictly adhere to bankruptcy rules. If not, the entire bankruptcy could end up getting dismissed.