A fresh-faced pop singer beloved by millions of fans has had a tough adolescence, and finds himself in difficult financial straits as he approaches adulthood. Aaron Carter, known by Michigan fans as the younger brother of Backstreet Boy Nick Carter, charmed the world in the early 2000s with his catchy pop songs elevating him to superstardom. However, youthful financial inexperience has resulted in the singer's fiscal challenges today, prompting him to file for Chapter 7 bankruptcy.
According to the singer's representation, despite generating considerable income at the height of his young career, he has found himself deeply in debt. Court documents indicate Carter has claimed less than $10,000 in assets, including a personal computer and some recording equipment. His debts clock in at roughly $2 million, most of which is owed to the IRS.
Carter reputedly has not paid owed taxes in full since 2003, resulting in the IRS hitting him with a lien in 2009. It is estimated that his full bill to the revenue service caps out at nearly $1.4 million. While it is generally unusual for tax debts to be forgiven via a Chapter 7 bankruptcy filing, it is not impossible. However, the lien will likely not be forgiven, meaning that bankruptcy could be the young singer's best option to work toward paying down his tax debts and getting back on top of his financial life.
Michigan residents should take note of this story. While filing for Chapter 7 bankruptcy is often viewed in a negative light, Aaron Carter's experiences prove that financial hard times can befall even the most affluent individuals. With luck, this filing will help the performer to work past the inexperience of his youth and move forward in a positive financial direction.
Source: Forbes, Not Too Young, Not Too Old: Aaron Carter Hopes For Fresh Start Following Chapter 7 Bankruptcy Filing, Kelly Phillips Erb, Nov. 22, 2013