New Yorkers who plan on filing for bankruptcy may be interested in a publicized case involving rap artist Curtis Jackson, better known as 50 Cent. Jackson filed for bankruptcy in 2015 following a court's order that he pay $7 million to a woman who had a disagreement with him over a sex tape, and as of early 2016, he was known to owe different creditors a total of approximately $30 million. Three of them sought to have an impartial third party take over the rapper's money management until he satisfied the payment terms.
Many New Yorkers are concerned about how filing for bankruptcy will affect their credit scores. While bankruptcy will cause an immediate drop in a person's credit score, there are ways people can quickly improve their credit thereafter.
Although many New York residents may be familiar with Tori Spelling's acting career, they may not be quite as familiar with the reported financial challenges faced by her and her husband, 49-year-old Dean McDermott. The actress reportedly went through a physically and financially challenging time in the summer of 2015, which included hospitalization and significant pain that kept her from working. Now, she faces a lawsuit from American Express, a company to which she reportedly owes approximately $40,000. Because of the financial pressures, Spelling's husband is apparently requesting that she declare bankruptcy.
People in New York who are behind on some of their most important bills may want to consider filing for bankruptcy. Once bankruptcy is filed, the debtor is automatically protected from most legal actions that could be taken against them by bill collectors and creditors. The automatic stay will also stop pending litigation or ongoing proceedings involving the debtor's unpaid bills.
New York pro football fans might be surprised to learn that former NFL running back Clinton Portis has filed for bankruptcy. The 34-year-old played for the Denver Broncos and the Washington Redskins and earned around $43 million over nine seasons. According to his federal bankruptcy filing, Portis owes almost $5 million to various creditors.
Many people in New York may be struggling with debt and unaware of their options. Bankruptcy is the right choice for some while others might have various possible solutions that they can pursue first. When trying to figure out a way to pay off debts, people should first evaluate their budgets.
Many people in New York and elsewhere have struggled to keep up with payments on credit cards or medical bills. Often they will refuse to consider Chapter 7 or Chapter 13 bankruptcy because of the perceived stigma attached to these types of debt relief. While their concerns are not wholly unjustified, there are actually times when bankruptcy and the consequent hit on one's credit rating is a valid method of debt relief.
New York UFC fans may find it interesting that Edmond Taverdyan, the coach of superstar UFC fighter Ronda Rousey, filed for Chapter 7 bankruptcy on July 29. What makes this unusual is that, despite coaching one of the world's most dominant and celebrated fighters, Taverdyan lists his occupation as "Not Employed" and claims his income is "$0.00" in court filings.
A North Carolina bankruptcy case illustrates how important it is for people in New York to honestly disclose assets when filing for bankruptcy protection. After investigating a complex bankruptcy case, a judge on the U.S. District Court for the Western District of North Carolina concluded that a debtor's hidden individual retirement account that held approximately $234,000 could be accessed by creditors because it was not revealed during the bankruptcy process.
New York residents who are in the process of bankruptcy may be facing the negative effects of a 2005 overhaul of the bankruptcy system, according to the American Bankruptcy Institute. Two panelists in an ABI webinar report that the Bankruptcy Abuse Prevention and Consumer Protection Act actually created more difficulties for honest consumers. Another, however, argued that the act has succeeded in meeting its goal of reducing the increasing number of bankruptcies.