Residents of Appleton, Wisconsin, buried under a pile of debt know how difficult it is to decide if filing for bankruptcy is the right solution for digging out. Without foreseeing the risks of acquiring too much debt, a person may be left without any choice but to become insolvent. Although it denotes a negative connotation, filing for bankruptcy is not a bad decision for a person struggling with debt.
Even celebrities who have much higher earning potential than average working Americans often find themselves in the middle of financial challenges. Drake Bell, one half of the Nickelodeon network television show duo “Drake and Josh,” is one celebrity who knows such a challenge. It was recently reported that he filed for Chapter 7 bankruptcy. According to the filing, the 27-year-old actor owns a small amount of personal property and just over $1.5 million in real estate, but owes about $2.66 million in debts. Of that debt, $46,000 is owed to the IRS. Bell’s monthly expenses of nearly $20,000 are no match for his average monthly intake of nearly $3,000.
After Bell’s show ended nearly 6 years ago, his television appearances have been less steady and he has been the voice of several animated characters, but eventually the actor decided to file for Chapter 7 bankruptcy last year.
A fresh financial start begins with choosing the right debt relief option. Bankruptcy can affect a person’s credit score and his or her ability to acquire credit in the future.
Debt can be eliminated in several different ways, including filing for Chapter 7 or Chapter 13 bankruptcy. Under Chapter 7 bankruptcy or liquidation, the filer has no repayment plan and can keep future income. However, some or all of the filer’s non-exempt assets must be sold to pay creditors.
Sound financial advice is necessary before declaring insolvency. Wisconsin debtors must meet certain criteria to file for Chapter 7 bankruptcy and understand that bankruptcy cannot eliminate all debts.
Source: eonline.com, “Drake & Josh Alum Drake Bell Files for Bankruptcy,” Jordana Ossad, Feb. 13, 2014