Showing how easily debt in uncertain times can overwhelm even the famous, just three years after his wife filed for divorce, singer Eddie Montgomery of the country duo Montgomery Gentry has put up his restaurant and house for sale.
The singer, who from 2000 to 2009 was nominated for awards from both the Academy of Country Music Awards and the Country Music Association Awards, filed for Chapter 7 bankruptcy after amassing $13.4 million in liabilities while holding just $1.9 million in assets. Montgomery’s debt reportedly stemmed from the failure of his restaurant, Eddie Montgomery’s Steakhouse in Harrodsburg, which ceased operation last May and is currently being for sale. His petition lists around $8.4 million in payables, mostly related to his restaurant business. Proceeds of the sale will cover $12.7 million in default loans.
The house Montgomery owned with his wife is also for sale. Although the house is valued at $1.25 million, the bankruptcy filing lists $1.16 million in interest that will go to the banks.
All businesses include financial risks. Montgomery’s bankruptcy filing only shows that people anywhere, including New York, and from all walks of life can face financial challenges at some point in their lives. Fortunately, a Chapter 7 bankruptcy or liquidation can help a person start over financially. Through this particular form of insolvency, a debtor can pay off debts by selling some properties while receiving adequate protection from creditors.
Not everyone is eligible to file for Chapter 7 bankruptcy, so adequate credit counseling and advice from bankruptcy professionals is needed to ensure that the right debt-relief option is chosen.
Source: kentucky.com, “Country singer Eddie Montgomery files for bankruptcy,” Janet Patton, Jan. 2, 2014