31 Mar Celebrity Bankruptcy
Bankruptcy clients may have different reasons why they need to file for bankruptcy: A job loss, medical bills, a divorce, or just poor spending decisions. But they all have one thing in common:The last thing they wanted to do was file for bankrutpcy.
Often when I see a potential bankruptcy client, they have refinanced their home in an attempt to pay off credit card debt, (and in doing so, they have taken unsecured debt and turned it into secured debt),.
Some borrow from their 401K or other retirement, or even worse, cash in the retirement plan, thereby incurring tax and early withdrawl penalties.
These clients are beaten down, depressed, and for the most part, they are embarassed.
They shouldn’t be embarrassed.
In his article “Is Filing Bankruptcy Embarrassing?”, Illinois Bankruptcy Attorney, Andy Miofsky points out a number of reasons why you should not be embarrassed about filing for bankruptcy, one of which is the fact that major corporations routinely file for Chapter 11 bankruptcy as a way to get their debt under control. (Retailers in Chapter 11 bankruptcy have also developed a really bad habit of filing right before the holidays, selling a bunch of gift cards and then converting to a Chapter 7 so that they don’t have to honor the gift cards. If they remain in a Chapter 11, the gift card may or may not be honored).
Infinity Comcast.net Entertainment points out another group that also uses bankruptcy to start over: Celebrities.
Bankrupt Celebs, an online slide show on Comcast.net Entertainment, provides pictures of 35 celebrities that have filed for bankruptcy along with a brief description of why the celebrity filed for bankruptcy.
You can also find articles on bankrupt celebrities on mybankruptcy blogsite.
So, if you do feel embarassed about filing for bankruptcy, just remember that your in good company.
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