Readers in Mesa may have heard that 67-year-old "Lethal Weapon" actor Gary Busey filed for Chapter 7 bankruptcy earlier this month after spending many years attempting, unsuccessfully, to organize his affairs. His creditors include lawyers, banks and medical centers.
Chapter 7 bankruptcy protection is the most common type of bankruptcy, and with certain exemptions, results in wiping out all bills. In order to file under this chapter, there are certain income requirements that must be met.
The actor's manager stated that the actor filed for personal bankruptcy as a result of unfortunate events, associations and choices. This will clear his past debts, giving the actor a much needed fresh start with his partner and son.
Many people have lists of creditors similar to that of Busey's and are overwhelmed with their debt. They deserve to utilize this legal tool in order to begin their life afresh, without fear of harassment, repossession or garnishment of wages. However, many people, including residents of Mesa, Arizona, are hesitant to file for Chapter 7 bankruptcy, as they are uncertain about which of their possessions they can keep once the trustee begins to sell them to fulfill their debts.
If that is the case, meeting with an experienced bankruptcy attorney may alleviate many concerns a debtor may have. The filer may be able to keep most of his or her assets, such as the household items, a vehicle and in some instances, even the house. In certain situations, taxes are even discharged. If a potential filer does not qualify for chapter 7, other debt relief options such as Chapter 13 bankruptcy can be pursued to help relieve the stress of debts and put the debtor back on the track to financial stability.
Source: Reuters, "Gary Busey Bankruptcy Shocker: Actor Files for Chapter 7 Protection," Tim Kenneally, Feb. 9, 2012