Aaron Carter was only 15 years old when he began to gain fame in the early 2000s. He was known for his pop music and dating of starlets such as Hillary Duff. Now, however, he says that he has little to show for that work and has sought a Chapter 7 bankruptcy in his home state. The process for Carter will be similar to those filed by people here in New Jersey.
In a Chapter 7 bankruptcy case, people can expect to have many of their debts discharged at the successful completion of the process. Before that occurs, they must first disclose their assets and debts. This information is used by the trustee assigned to the case to determine what, if any, property is available to repay creditors a portion of what is owed.
Often called a total liquidation bankruptcy, a Chapter 7 can happen relatively quickly for people in New Jersey who own little property but have a relatively high amount of debt. This is likely what Carter is hoping for as he goes through the process. However, he may face some difficulty in his case due to the nature of his debts, since they include tax liens.
Filing for a Chapter 7 bankruptcy may be a difficult decision for people in New Jersey to reach. However, there is good news for Aaron Carter and others. Because the process can be completed quickly and a person is able to be freed from overwhelming debts, many find that they can restart their financial lives sooner that they expected. This can lead to new businesses, new homes and other benefits for those who need help and get it in the form of bankruptcy protection.
Source: forbes.com, Not Too Young, Not Too Old: Aaron Carter Hopes For Fresh Start Following Chapter 7 Bankruptcy Filing, Kelly Phillips Erb, Nov. 22, 2013