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Singer's debts blamed upon mismanagement of others

Individuals forced to file bankruptcy come from all walks of life.  It has been revealed that 25-year-old singer Aaron Carter was forced to file bankruptcy last month.

It was reported that his assets totaled $8,232.16 while his liabilities amounted to $2.2 million.  It is claimed that a large portion of this debt came about more than 10 years ago when Carter was a minor.  It is asserted that much of this money was managed by others at the time the debt occurred.  "Most of that is an IRS tax debt," claimed his representative.  "It's very old debt from when his money wasn't in his control."

Like most consumer bankruptcy options, Chapter 7 was designed to provide individuals in debt a fresh start.  It allows individuals to discharge most debts while being able to hold onto their assets.  Though it does not allow for a person to discharge every debt (taxes, loans or child support obligations), it may at least allow individuals to be freed of certain debts so that these other debts can be paid.

There have been recent law changes that have made it more difficult for certain individuals to file for Chapter 7.  It's for this reason that it's important for filers to locate attorneys that understand the law changes and can, if necessary, discover other methods in dealing with the debt.  This could mean filing Chapter 13 bankruptcy.  It could also mean not filing bankruptcy at all and instead negotiating with creditors to see if other arrangements could be made.

Source: Seattle PI, "Singer Aaron Carter files for bankruptcy," Nov. 20, 2013

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