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Celebrity cases like personal bankruptcy of some in California

California readers know that financial difficulties can strike people regardless of their wealth or social status. Celebrities are not immune to the challenges that have led some of us in our state to seek the protections offered by a personal bankruptcy. In fact, several celebrities took such actions last year when they found that they were unable to repay the debts that they owed to their various creditors.

For example, a personal bankruptcy petition was filed under Chapter 7 by the comedian known as Sinbad. In his case, the actor disclosed to the court that he had debts totaling some $10.99 million. These were offset by the assets that he claimed to own that were valued at just $133,126.

Other celebrity personal bankruptcy cases that made headlines in 2013 included Casey Anthony and Kelly Rutherford. In both of those matters, the court reviewed the disclosed information about their assets and liabilities before issuing a discharge. This meant that creditors would no longer be able to seek collection of the debts that were involved in the personal bankruptcy case.

The disclosure of information is a required action in every California personal bankruptcy case. Like the celebrity matters, each person who files must submit the information so that the trustee assigned to the case can work to determine which assets are available to repay creditors. The good news is that once this process is complete, many people find that they are able to obtain a discharge of most, if not all, of their unsecured debts. This allows for a financial reboot that can offer relief to many in our state and elsewhere.

Source: Money Talks News, 6 Famous Bankruptcies of 2013, Karla Bowsher, Jan. 6, 2014

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