Bankruptcy offers financial solution to people of all ages

Though a difficult issue for many to face, the reality is that each day, people of all ages, genders and socioeconomic backgrounds decide to seek financial relief via a bankruptcy filing. What these filings all have in common is that the individuals who decide to file have debt that outweighs their assets and may feel overwhelmed by debt. This situation exists for individuals in Ramsey County as well as throughout the Twin Cities. Just as the demographic of individuals seeking debt relief via bankruptcy varies widely, so too does the reason that an individual seeks resolution via this method.

The recent Chapter 7 bankruptcy filing by the performer Aaron Carter illustrates this. The 25-year-old man's financial difficulty appears to be in large part due to tax issues. While he reports assets worth a total of just $8,232.16, his liabilities total more than $2 million. Of that $2 million, $1,368,140 is owed to the Internal Revenue Service. His issues with the IRS began in 2003, when he was just 15-years-old.

When Carter's tax issues first arose, his career was in high gear. In addition to hit songs on the radio, he also performed in many concerts and was often seen on television. In short, he was living the dream of many teen performers. Unfortunately on the financial front, because of what appears to be mismanagement, that dream turned to a nightmare.

Tax issues are just one of many reasons that an individual may find it necessary to file for bankruptcy. Other reasons consumers file for Chapter 7 or Chapter 13 bankruptcy include the loss of a job, medical bills and credit card debt. Regardless of why someone is facing financial difficulty, addressing it and determining one's options is the first step toward getting back on track. In many cases that involves consulting with a bankruptcy lawyer.

Source: Forbes, "Not Too Young, Not Too Old: Aaron Carter Hopes For Fresh Start Following Chapter 7 Bankruptcy Filing," Kelly Phillips Erb, Nov. 22, 2013

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