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Country music star seeks debt relief through Chapter 7

Well-known country songwriter and artist Eddie Montgomery can probably write another song to fit the genre, but this one would be about the fresh start following a bankruptcy. Residents of Appleton, Wisconsin, may be interested to hear that despite a decade of success as part of the duo known as Montgomery Gentry that saw him win several music awards, the country star recently filed personal bankruptcy to discharge debts accumulated from a failed business and failed marriage.

Montgomery's finances took their biggest tumble last May when he had to close Eddie Montgomery's Steakhouse. He and his then-wife opened the restaurant in 2009. The restaurant has been put up for a sale this month; proceeds will be used to pay off almost $12.7 million in debt. According to his bankruptcy filing, Montgomery had assets worth just $1.9 million but liabilities worth $13.4 million.

The 273-acre house Montgomery shared with his now ex-wife was also listed for sale at $1.25 million. The sale amount will be surrendered to the bank as interest.

Any Wisconsin resident can face the same financial problems as a famous celebrity, be it a failed business venture or insurmountable medical expenses. When faced with such problems, people should understand that options are available, such as debt relief and Chapter 7 bankruptcy, that may permit them to start over fresh.

Different options are available when it comes to debt relief, depending on the circumstances and certain qualifications. For Wisconsin residents with overwhelming debt, either Chapter 7 bankruptcy or Chapter 13 bankruptcy may be worth exploring. In some cases Chapter 7 bankruptcy may be an option when a debtor wishes to resolve matters in a relatively short amount of time, while in other cases Chapter 13 may be an option for people who seek manageable payment plans to clear their debt. Both debt-relief options can relieve long-term financial stress.

Source: Kentucky, "Country singer Eddie Montgomery files for bankruptcy," Janet Patton, Jan. 2, 2014

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