Filing for personal bankruptcy is no one's first choice, nor is it the outcome that anyone imagines for their future. However, in times of economic difficulty, many people find themselves in serious financial turmoil and in need of fast and lasting debt relief. Chapter 7 bankruptcy can provide that relief, and Michigan residents who need this level of financial intervention should understand that they are not alone.
Globally acclaimed singer Dionne Warwick recently filed for Chapter 7 bankruptcy. Despite decades of success including the hit 'Do You Know the Way to San Jose?' and others, the singer has suffered from financial hardship in recent years. As a result, she has made the decision to file, and is likely anticipating the discharge of much of her unsecured debt as the process moves forward.
In a statement released by her publicist, much of the singer's financial woes are attributed to 'gross mismanagement' of her finances during the 1980s and 1990s. It is unclear whether the singer managed her own money during that period, or if her finances were handled by professionals. However, she accumulated a hefty tax debt, and has struggled to pay down the back taxes and associated fees and penalties.
As her case demonstrates, anyone can find themselves in need of Chapter 7 bankruptcy protection, in Michigan or elsewhere. Amassing a large degree of wealth does not insulate an individual from financial troubles, and it can be argued that people who become accustomed to a certain degree of wealth and income may pay less attention to the details of their finances than those who live month-to-month. Regardless of how successful or wealthy one has been in the past, once severe financial strain sets in, it is time to consider options for debt relief.
Source: ABC News, "Dionne Warwick Files for Bankruptcy," Jennifer Abbey, March 26, 2013