Regardless of the reason — the recession, medical emergency or other financial calamity — millions of people around the country struggle to deal with out-of-control finances. Not even celebrities are immune to financial hardships. Recently, singer Aaron Carter filed Chapter 7 bankruptcy in order to regain control of his finances.
Thousands of Florida residents can empathize with the child star that ended up in dire financial straits through circumstances beyond his control. Court records indicate Carter owes his creditors over $2.2 million. The bulk of that debt is reportedly an old IRS obligation from when he was a minor when others were not properly managing his money. Where it is true that debts to the IRS are not necessarily discharged in a bankruptcy, there are exceptions. Some IRS debt over a certain age may be discharged.
Court papers show Carter has assets totaling $8,232.16. Filing bankruptcy is just one step toward Carter straightening out his life. A representative for the singer says the singer has made many smart, but sometimes difficult, decisions this year. Filing for bankruptcy protection was one of them. Discharging his old debts may enable Carter to put many past mistakes behind him.
The same thing can happen for Florida residents that are burdened with debt. Many people continue to struggle with their debt when there are other options available. Chapter 7 bankruptcy can eliminate most, if not all, of a filer’s debt. Starting over and putting past financial issues to rest can pave the way to a brighter future and a return to financial stability.
Source: Us Weekly, Aaron Carter Files for Bankruptcy: “Positive Step For Him,” Says Rep, Nicole Eggenberger and Jennifer Peros, Nov. 21, 2013