Former pop star Aaron Carter has filed for Chapter 7 bankruptcy, claiming he has assets worth just over $8,000 and more than $1.3 million in debts.
According to Forbes, Carter, 25, who once dated actress Hilary Duff and is the brother of Backstreet Boys member Nick Carter, owes the Internal Revenue Service (IRS) $1.3 million. His tax debts date back to 2003, when he was just 15-years-old.
“In great demand like his brother, Nick Carter of the Backstreet Boys, [Aaron] Carter appeared on television shows, toured extensively and even had his own action figure,” Forbes reported.
In 2002, Carter attempted to sue Lou Perlman, his former manager, who worked with boy bans like ‘NSYNC and the Backstreet Boys, after he claimed that he was not paid royalties for his music and touring. The lawsuit was settled out of court. After the settlement, Pearlman pleaded guilty to money laundering and bank fraud charges. He is now in federal prison after defrauding investors of more than $300 million, as well as an additional $150 million from banks.
“His management team hopes that a Chapter 7 bankruptcy will offer the singer – who is still very young – a fresh start,” Forbes reported. “Chapter 7, which allows most debts to be discharged, is more drastic than Chapter 13, which generally results in a reorganization of debt. Carter likely opted for Chapter 7 bankruptcy because he doesn’t own anything of value – like a house – that he wants to hold onto.”
I Need a Maryland Bankruptcy Attorney
Unfortunately, in most cases, non-income tax debts cannot be discharged in Chapter 7 or Chapter 13 bankruptcy; however there are some ways to discharge income taxes if a debtor meets the following requirements:
- The tax owed is more than 3 years old at the time of a bankruptcy.
- Tax Assessment is performed more than 240 days before the bankruptcy.
- No fraud or tax evasion charges have been filed against the debtor.
Contact our Washington DC and Maryland bankruptcy lawyer Kevin D. Judd today to learn how to discharge your income taxes and protect your assets. Call us today at (202) 483-6070 if you have issues with debt.
Law Firm of Kevin D. Judd– Maryland and Washington DC bankruptcy attorney
Judd’s Judgment: You can begin to rebuild your credit following a bankruptcy by obtaining a secured credit card.