Bankruptcy is not uncommon among Hollywood. In fact, it happens more often than you would think. Just take a look at this list of celebrity bankruptcies.
50 Cent. Last year, rapper “50 Cent” filed for Chapter 11 bankruptcy protection just a few days after he was ordered to pay $5 million to a woman to settle a lawsuit.
Donald Trump. The real estate mogul and presidential candidate has filed for bankruptcy numerous times. The first time was in 1992. He filed again in 2004 in order to reorganize his casino business.
Abraham Lincoln. In 1833 the 16th President of the United States of America actually declared bankruptcy because of a failed business.
Cyndi Lauper. The singer filed bankruptcy in 1981 after splitting with her band. She was then sued for breach of contract. Three years later she released “Girls Just Wanna Have Fun.”
As you can see from our examples, people file for bankruptcy for any number of reason and then go on to achieve great things. Bankruptcy does not have to be the hindrance that it has been built up to be. Still, if you are considering filing, it’s important to know what forms there are available for you, and what the best option will be.
Chapter 11 Bankruptcy
In Chapter 11 bankruptcy, a business or individual reorganizes to pay down debt and creditors while regaining its profits.
In Chapter 13 bankruptcy, also known as “debt reorganization” or “wage earner’s bankruptcy,” is a more complicated and time-consuming process than Chapter 7 bankruptcy. In this form of bankruptcy, you repay all or some of your debt over three to five years, and it protects your home and car from foreclosure and repossession.
When you file a Chapter 7 bankruptcy, almost all of your assets and property are liquidated to pay off your creditors and debts. Chapter 7 bankruptcy can be an effective method of discharging most of your debt, giving you the fresh start you need. In addition, you will be able to keep your house, car and retirement savings in most cases.
Working with a Bankruptcy Attorney
Bankruptcy can be an overwhelming process. That’s why we advise that you work with a phoenix business bankruptcy lawyer that is familiar with various debt repayment options. We are committed to helping our clients understand their rights and options under the bankruptcy law and developing the debt relief solution that makes the most sense for each individual. We invite you to call (602) 648-3274 or contact our Arizona office to schedule a free initial consultation.
668 N. 44th St., Ste 320, Phoenix, AZ 85008