The last few years have been difficult for Maryland residents. Credit card debt, medical bills, lost jobs and high gas prices have hit many people hard. While some have been able to cope, others have had a difficult time making ends meet. A lot of the time financial difficulties occur through no fault on the person’s part. Other factors like a divorce or other major life change can also put a major dent in a person’s finances.
The economy has been so rough that even the rich and famous have not been immune from financial difficulties. In fact, country music superstar Eddie Montgomery has recently announced that he needs a financial fresh start. To obtain this freedom from his creditors, Montgomery has filed for Chapter 7 bankruptcy.
Eddie Montgomery is best known as part of the group Montgomery Gentry. The group was nominated for both Grammy Awards and Academy of Country Music Awards between 2000 and 2009. However, since that time, Montgomery’s attorney has said that he has had a persona business — a restaurant — fail and has gone through a divorce. Both have put major strains on his finances and have left him broke.
In the papers filed with the court, Montgomery claims to have $13.4 million in debt. However, he only has $1.9 million in assets.
Those who file for Chapter 7 bankruptcy — like Montgomery — will have the opportunity to clear much of their debt. From the moment the bankruptcy is filed, an automatic stay will go into effect which will give people much needed relief from harassing creditor and collection agencies. The court will then sell any assets that a person may have — although a lot of personal property will be exempt from sale. At the end of the proceedings any remaining debt will be discharged.
Those having financial trouble should carefully consider Chapter 7 bankruptcy with the help of a Silver Spring Maryland Chapter 7 Lawyer. It may be a good way to get a fresh start this year.
Source: The Lexington Herald-Leader, “Country singer Eddie Montgomery files for bankruptcy,” Janet Patton, Jan. 2, 2014