Tennessee is the home of many country music acts. Many talented folks come there in search of fame and fortune. However, the two are not always linked. Even those who have reached celebrity status have trouble paying the bills. Case in point: country singer Eddie Montgomery, who has recently filed for Chapter 7 bankruptcy.
Montgomery, part of the popular musical duo Montgomery Gentry, has had many hits since 1999. They have also received many award nominations for their work and sang to fans all over the world. So why is Montgomery broke?
He and his then-wife opened Eddie Montgomery's Steakhouse in 2009. The restaurant failed and the couple filed for divorce. Both situations combined led to Montgomery's overwhelming debt. The restaurant alone has nearly $8.4 million in debt. Altogether, Montgomery claims $13.4 million in liabilities and $1.9 million in assets. His home in Kentucky is listed for sale for $1.25 million. It includes 273 acres.
Bankruptcy is not something that should be taken lightly. However, for many people who are drowning in debt, Chapter 7 bankruptcy is a good way to get a fresh start in terms of credit. One thing that should be kept in mind is that bankruptcy does not eliminate all debt. For example, taxes, court fees, child support and alimony must still be paid. In addition, student loans and any debts incurred from criminal charges are not wiped clean. If Montgomery has any debts from a divorce settlement, he would have to continue paying those as well. So while bankruptcy isn't a panacea, it's still often the best choice.
Source: kentucky.com, "Country singer Eddie Montgomery files for bankruptcy," Janet Patton, Jan. 2, 2014