There are a lot of different forms of bankruptcy. Chapter 7 and 13 bankruptcies tend to be the ones used most by the average consumer. Businesses often turn to Chapter 11. Each chapter offers different avenues for achieving debt relief.
What all the forms of bankruptcy have in common, whether the filer is in Arkansas or anywhere else, is that they provide levels of protection from creditors, which gives the filer a chance to recover control of his or her financial situation. Setting the stage for a fresh start is what it’s all about.
It can be easy for the average person to dismiss the notion of bankruptcy protection. Many hold the view that this form of debt relief as a reflection of some sort of personal failure, when nothing could be further from the truth. That’s why it’s always best to consult with an attorney to explore options and determine what might be the best route to achieve a new beginning.
We offer the lesson of entertainer Sinbad. The 56-year-old artist’s real name is David Adkins. He had a solid run of situation comedy success back in the 1990s. He also has enjoyed some success in films and comedy specials on cable. But he apparently has run into some cash flow problems in recent years. He filed for bankruptcy in 2009. And in May of this year, he returned to court and is seeking protection once again.
Adkins says he currently has just $131,000 in assets and is generating income of $16,000 a month. That might seem like a lot to many, but he says he has debt of $11 million.
He says he racked up that debt trying to keep his personal business going, rejecting claims by critics that he has been living beyond his means. He says he used his own money to keep his business going, buying equipment and paying for space and personnel. He says he felt that if he could land a movie role he’d be able to erase the debt. But the role never came, and suddenly obligations, fees and fines put the situation out of control.
Adkins says in bankruptcy he plans to restructure his company and his situation so that he is positioned for what he is confident is to come.
Source: HuffingtonPost.com, “Sinbad On Going Bankrupt: I Thought I Could Get Another Movie And Pay Up, ‘But That Movie Never Came’ (VIDEO),” Aug. 22, 2013