Stories about those in Cuyahoga Falls filing for bankruptcy usually only turn the heads of those directly involved with the filers. Yet many people tend to sit up and take notice when a celebrity files for personal bankruptcy. People will often question how those who are given so many financial resources are still able to end up in such a dire financial situation, often owing up to millions of dollars in debt. The response to that question is almost always the same: the same way as everyone else.
Take the case of former teen star Aaron Carter; here's a young man who achieved enormous commercial success while still under the age of 16. Now, at 25 and claiming just over $8,000 in personal assets, he's had to seek protection through a Chapter 7 bankruptcy. The singer's debts total over $2 million, with over $1 million of that owed to the IRS in unpaid taxes.
Carter finds himself in this dire situation thanks in large part to the mishandling of his money by his mom and his former manager. in 2003, he filed for emancipation from his mother after accusing her of taking over $100,000 of his money. Yet it was his former manager who cost him and many other people millions of dollars through a multi-layered fraud scheme that netted him over $400 million before being caught.
Many can relate to Carter's story of trusting the wrong people and paying a huge financial price for doing so. Yet, just as the singer sees it, personal bankruptcy protection allows for a fresh financial with the opportunities to avoid such mistakes again in the future. Anyone in such dire financial straits may wish to consult with a bankruptcy attorney to see what his or her options are.
Source: Forbes "Not Too Young, Not Too Old: Aaron Carter Hopes For Fresh Start Following Chapter 7 Bankruptcy Filing" Kelly Phillips Erb, Nov. 22, 2013