As many Arizona residents may know, financial difficulties can be the result of many factors, some which are out of the debtor's control. In addition to that, financial problems can plague anyone -- not only people struggling to make ends meet but also celebrities and entertainers. The latest entertainer to face financial issues is Aaron Carter, younger brother of Nick Carter of the musical group Backstreet Boys.
The 25-year-old filed for Chapter 7 bankruptcy recently. According to his representative, the majority of his debt was accumulated over 10 years ago, when he was a minor and therefore not in charge of his finances. In fact, discharging his debt is his way to move his life and career forward, without being tied down to his past problems.
According to news reports, his assets are around $8,000 but his liabilities are more than $2,000,000. He owes over $1 million to the Internal Revenue Service and more than $31,000 in a credit card bill. Though the debt may be much more than the average Arizona resident carries, the charges may sound familiar. These days, credit cards are used for everything, from medical bills to grocery bills. However, the interest rates and late fees on credit cards often add to the debt burden, exacerbating the situation.
As per the entertainer, he has changed his lifestyle and is more focused on his career than anything else and letting go of his debt is his way of going forward with a clean slate. Bankruptcy wipes out most bills and even certain taxes in some cases. Filing for bankruptcy is one way to discharge debts so debtors can restart their financial lives anew.
Source: USA Today, "Aaron Carter files for bankruptcy," Andrea Mandell, Nov. 21, 2013