Tag Archives: Chapter 7

When Should I NOT File for Chapter 7 Bankruptcy?

When you are thinking about filing for Chapter 7 bankruptcy, you have several options, but before you commit, you should make sure that this form of bankruptcy is right for you. There are a few questions you should answer that can help determine the correct choice: Will creditors be able to claim your property if you do not file for Chapter 7 bankruptcy? In some circumstances, creditors will not have anything significant to take from you to satisfy your debt to them. For example, if your income comes from Social Security, which is a protected asset, and your property is exempt, creditors might realize that suing for judgment is pointless. In that case, filing for Chapter 7 bankruptcy is probably unnecessary. Do you have enough dischargeable debt to make bankruptcy worthwhile? If your debts mostly consist of things like child support, alimony, student loans in many cases, recent income taxes…
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Former Teen Heartthrob Aaron Carter Files for Bankruptcy

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…
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Rent Stabilization Bankruptcy Case Draws Attention in NYC

Last week, the New York Times had an interesting story about a woman who filed for bankruptcy two years ago, with creditors calling into question her rent-stabilized apartment. According to the Times, Mary Veronica Santiago, 79, fell behind on her bills before filing for Chapter 7 bankruptcy. Santiago, who lives in the East Village in New York City, now has a case that could put her and millions of other rent-stabilized leasers in New York at risk. Santiago’s case is pending before the United States Court of Appeals for the Second Circuit, where creditors are trying to argue that her lease can be treated as an asset in her case, just like a car or piece of land, to help pay off her debts. The trustee in Santiago’s case thinks that the lease should be considered an asset. Her apartment, which she has lived in for 50 years, is a…
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