Tampa residents can learn from celebrity bankruptcy filings

While most residents in Tampa, Florida, live their lives without their financial troubles being broadcasted on the news, there is something residents can learn from looking at the debt problems facing certain celebrities. Not only do their stories show anyone can run into financial hardships, but it also proves that debt relief options are often available.

Take for example the recent news that former supermodel Janice Dickinson filed for bankruptcy. The 58-year-old reportedly has more than $1 million in debt. This money is owed not only to the government in the form of unpaid taxes, but also to plastic surgeons and cosmetic professionals.
At one point, the claim is that Dickinson was even facing the possibility of eviction for falling behind on her monthly rent payments by three months.

When asked about her bankruptcy, Dickinson did admit that she had fallen behind and feels terrible about the money she owes. However, bankruptcy may be one way for her to get back on top of her finances.
For Tampa residents hearing of Dickinson’s bankruptcy, while their own debt issues may not be in the form of owing plastic surgeons, any Florida resident can run into debt. Whether it is in the form of credit card debt, unpaid medical bills or being behind on mortgage payments — or a combination of all three — being in debt is surely a frustrating time.
However, as Dickinson did, filing for bankruptcy is often an option.
In terms of filing for personal bankruptcy in Tampa, it is important for all residents to understand they are certainly not alone. Over the past several years, the area has been severely impacted by the downturn in the economy. In turn, this has led many residents who never imagined having financial problems to bankruptcy.
With personal bankruptcy, there are two types to consider: Chapter 7 and Chapter 13. With a Chapter 7 bankruptcy, assets are liquidated and debts are discharged. The financial slate is essentially wiped clean.

However, Chapter 7 is not necessarily for everyone and there are eligibility requirements. For some, this is where Chapter 13 can work to their advantage. With this type of filing, also commonly referred to as a wage earner’s plan, a repayment plan is created with monthly payments being made over the next three to five years.
When it comes to filing for bankruptcy though, while this can clear up debts and put an end to creditor phone calls, this is merely a brief overview and not something that should be done alone. Rather, many reach out to attorneys with experience handling personal bankruptcy cases in order to learn more about what debt relief options are available and to make the best choice for their individual situations.

Source: Los Angeles Times, “Former supermodel Janice Dickinson files for bankruptcy”, Nardine Saad, April 23, 2013