Countless celebrities have filed for bankruptcy over the years. According to Time, this long list includes talk show titan Larry King, former heavyweight champ Mike Tyson, rappers 50 Cent and MC Hammer, actors Gary Busey and Burt Reynolds, and rock stars Tom Petty and Mick Fleetwood. Abraham Lincoln, Henry Ford and Donald Trump are often cited as other examples.
In the U.S., bankruptcy is a legal way of discharging, reducing or restructuring debt that a debtor cannot afford to service or pay off. Each year, hundreds of thousands of individuals and businesses file for bankruptcy under Chapter 7, Chapter 13 and Chapter 11 of the federal bankruptcy code. Many people are researching the viability of bankruptcy right now.
What do I have in common with Henry Ford and Walt Disney?
According to CNN, both Ford and Disney used bankruptcy to deal with serious business problems. If you’re in personal or small-business debt, and you can’t resolve the situation despite your best efforts, you may want to speak with a knowledgeable bankruptcy attorney.
If bankruptcy is right for you, it is possible to find massive relief from the stress that comes with excessive debt. Either through a Chapter 7 “liquidation,” a Chapter 13 payment plan or a Chapter 11 reorganization, you may be able to put your debts in the past.
Every situation is different
Bankruptcy is not something to do on your own. In general, you need legal advice to understand if you qualify for bankruptcy and, if you do, to file in a way that provides maximum benefit. Most bankruptcy attorneys provide a free initial consultation.