Severe money problems can happen to virtually anyone -- even people who once earned large salaries and are nationally famous. People far and wide sometimes find it necessary to file for bankruptcy protection in order to get back on solid financial footing.
Comedian Sinbad has firsthand knowledge of this fact. He reportedly filed for Chapter 13 bankruptcy recently due to his financial problems. He explained that his debts exceeded the $10 million mark, while his assets barely topped $100,000.
As in many cases where someone finds themselves in over their head financially, the reasons for Sinbad's woes include thousands of dollars in credit card debt and income taxes.
His decision to pursue Chapter 13 bankruptcy allows him to reorganize his debts and create a payment plan that better fits with his current level of income. Additionally, it protects his possessions, including several newer model cars and SUVs as well as a few hundred copies of a book he authored.
By pursuing a Chapter 13 bankruptcy, the comedian puts a halt to foreclosure, repossession, wage garnishment, and creditor harassment. He also grants himself the time he needs to make payments on his debts at a more reasonable interest rate.
This time, when he files for bankruptcy, he just needs to make sure he takes the time to handle it properly. Back in 2009, his first attempt at filing for bankruptcy was tossed out because he didn't file the correct documents. That's when getting expert advice can make all the difference in the world.
Source: The Columbus Dispatch, "Sinbad, almost $11M in debt, files for bankruptcy," Dave Poole, May 21, 2013