Among the 1,221,091 new bankruptcy cases filed in federal courts in 2012, several headline-grabbing celebrity bankruptcy cases serve as a reminder that fame and fortune can be all too temporary. World-famous celebrities such as actress Lindsay Lohan, NBA star Allen Iverson, “Octomom” Nadya Suleman, and Olympic gold medalist Sheryl Swoopes have filed for bankruptcy in recent years, showing that celebrity does not immunize one from mounting debts and bankruptcy can be a useful tool in overcoming these debts.
The importance of financial planning
In recent years, many celebrities, especially those who achieve fame and fortune early in their careers, are increasingly seeking the advice of business managers to help them manage their budgets and avoid debts which, if not handled responsibly, may lead to bankruptcy. These money management skills are growing in importance as young talents are suddenly trying to keep pace with the spending habits of veteran celebrities or are succumbing to pressure from family and friends to live beyond their present means. Even with skilled financial planning, unforeseen life events such as illness or unemployment can cause anyone to fall behind on bills and feel overwhelmed by debt. Bankruptcy may be an appropriate solution for anyone struggling financially.
Bankruptcy and finance education
Prior to filing a bankruptcy petition, federal law requires you to participate in a pre-bankruptcy counseling session, where a certified counselor evaluates your financial situation, discusses bankruptcy alternatives, and helps you develop a personal budget. Federal law provides for this type of consumer education to continue post-bankruptcy — with debtor education on topics such as budgets, money management, and responsible credit use.
At BK Lawyers LLC, we can help you evaluate your finances and determine if bankruptcy is the appropriate option for you. Contact us today to schedule your free initial consultation.