As previous posts here have noted, financial challenges can affect Colorado residents from all walks of life. No matter what a person's age, gender, race or even wealth status, individuals who are facing overwhelming debt may find it necessary to file for Chapter 7 bankruptcy.
A good example of this was provided recently by actor Drake Bell, a former Nickelodeon television star who owns more than $1.575 in real estate property. Bell filed for Chapter 7 due to having debts of over $2 million, including a substantial tax payment due to the IRS. The actor, who is 27-years-old, claimed monthly expenses totaling more than $18,000.
Bell's bankruptcy demonstrates that even young and successful individuals can find themselves deep in debt, which can present severe financial challenges. These individuals should look at a number of factors to determine whether bankruptcy is right for them, and what type of bankruptcy might best suit their individual needs.
For instance, some debts are not discharged during bankruptcy, including certain tax debts owed to the IRS. Then again, bankruptcy can wipe out other types of debt, which might free up funds in order to enable the person to pay these non-dischargeable debts.
Individuals should also consider what will happen to their property in different types of bankruptcy filings. For instance, knowing what the person can keep, particularly with important items like a home and car, is essential before the person files their bankruptcy petition. By getting the right information, individuals can discover the answers to these important questions before filing, and then concentrate on clearing their debt and starting anew.
Source: Eonline, "Drake & Josh alum Drake Bell files for bankruptcy," Jordana Ossad, Feb. 13, 2014