There are all types of people who find themselves struggling to make ends meet and keep up with financial obligations. Some people have huge student loan debts or medical bills while others may have experienced a significant life event or career change which dramatically affected the money they take home. But every person’s situation is different, which is why there are multiple options for seeking relief from debt.
Bankruptcy is often one solution that people in New Jersey consider in order to tackle mounting debt. But even that comes with a number of different options, each intended to relieve different types and levels of debt. Is the debt tied to an individual or a business? Can it be handled by filing for bankruptcy? Will it be discharged or reorganized? Depending on the answers to these and other questions related to debt, a person may have a number of options to seek relief.
Recently, famous rapper DMX, whose real name is Earl Simmons, filed for bankruptcy protection. His financial struggles have plagued him for years and he recently took steps to reorganize his debt.
According to reports, DMX is more than $1 million behind in child support. He owes a clothing line for dogs hundreds of thousands of dollars for failed promotional efforts. His money managers have been accused of mismanagement and his delinquent child support payments have made it impossible for him to leave the country to work and tour overseas.
Not all of the debt he has accumulated can be discharged, including the $1.2 million in child support. However, by working to reorganize debt, it may be easier for him to meet his financial obligations and get back on track with payments. If he can do this, he hopes to get his career back on track and start touring again to make money.
Not everyone is dealing with financial managers, millions of dollars and a celebrity lifestyle. However, there are all types of people who can benefit from reorganizing whatever debt. Financial issues do not just go away on their own. Whether a person works to have it discharged or reorganized, dealing with the situation can be crucial in making a fresh financial start.
Source: Business Insider, “Rapper DMX Files For Chapter 11 Bankruptcy,” Mandi Woodruff, July 30, 2013
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