Bankruptcy is an issue that affects many people in the United States, including a number of people in San Diego. It doesn't matter whether a person has millions upon millions of dollars or lives paycheck to paycheck; bankruptcy does not discriminate. There are a collection of misconceptions about people who file for bankruptcy. However, contrary to what some people may believe, filing for bankruptcy is often the smartest financial decision person can make.
Dionne Warwick, a famous singer, recently made the choice to file for bankruptcy after falling nearly $10 million into debt. According to the Bankruptcy Court, the senior singer listed assets of just over $25,000 with liabilities of more than $10.7 million. At 72 years old, with an income far lower than one might expect for such a famed voice, it seems very unlikely Warwick would be capable of paying down the debt without legal intervention.
The singer's publicist has confirmed that part of the problem stemmed from back taxes. The IRS and the state of California account for nearly all of the indebted money. The publicist went on to say that, though the back taxes have been fully paid, penalties and interest have continued to grow. Warwick made offers for repayment plans to the IRS, but was rejected. As such, it seems the most financially responsible decision she could make was to file for bankruptcy.
Sometimes, financial difficulties can become overwhelming. It doesn't matter whether a person is renowned or working four jobs to make ends meet - debt can be a slippery slope. In San Diego, it's not uncommon for people who are struggling to find relief when they file for bankruptcy. Despite some of the misconceptions associated with bankruptcy, it's often a responsible choice to lift that huge weight off the shoulders of people drowning in debt.
Source: Contactmusic.com, "Dionne Warwick Files For Bankruptcy After Falling $10 Million In Debt," March 26, 2013