It can start with an unanticipated medical expense and only worsen with an abrupt job loss. These types of life changes can lead to overwhelming debt, something that people rarely foresee. But once debt begins to pile up, things can begin to look hopeless.
While there are a few options for people facing mounting debt, one solution is to file for a Chapter 7 bankruptcy. Recently one celebrity found himself in deep debt with little hope of getting out. As a result, Gary Busey, best known for his role in "Lethal Weapon", filed for Chapter 7.
This type of bankruptcy protection can actually help an individual retain some assets while still forgiving debt. For Busey, the decision to file for bankruptcy resulted from debt that was far greater than his assets.
According to the papers that were filed, the actor owes money to a number of different entities and individuals, including the IRS and a woman who sued the actor late last year. But like many others, Busey's financial situation was the result of years of life choices, changes and circumstances.
Even with the New Year, companies and consumers alike are facing tough decisions when it comes to finances. Dealing with overwhelming debt can be a daunting and complicated process -- fortunately there are ways to get a fresh financial start.
If you find yourself struggling with debt, it may be beneficial to speak with someone who understands the bankruptcy process. Filing for bankruptcy can not only help you with your debt but can also prevent foreclosure and end creditor harassment.
Source: Reuters, "Gary Busey files for Chapter 7 bankruptcy protection," Tim Kenneally, Feb. 8, 2012