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Mel Gibson's ex files for Chapter 13 bankruptcy

Bankruptcy can be the result of many factors, many of which are unforeseeable, such as a sudden illness, loss of employment or sudden death of the breadwinner of the family. For some Arizona residents, bankruptcy can even come as the result of a long drawn-out child custody battle. Whether Chapter 7 or Chapter 13, bankruptcy can be a resource for a variety of financial challenges.

According to reports, actor Mel Gibson's Russian ex-girlfriend has declared bankruptcy this year after going through a four-year legal battle. In the documents submitted to the court, she claims she only has $10 to her name and $48,000 in assets, compared to around $438,000 of debt.

Her debts include lawyer's fees racked up in the four-year battle that saw her go through 40 lawyers. In addition to this suit, she was also embroiled in an assault case against the actor. Just like many Arizona residents, she also has a substantial amount of credit card debt, though the amount may be less than what many debtors have.

Court documents demonstrate she filed for Chapter 13 bankruptcy. In Chapter 13 bankruptcy, the filer repays their debt, but through court supervised payments based on the filer's income. The filer can also retain possession of certain household items and even the residential home and car up to a certain monetary amount.

Bankruptcy allows the filer to pick up the pieces of his or her financial life and rebuild it without the stress of overwhelming bills. It also puts an end to creditor harassment that at times is even more stressful than the debt itself. Arizona residents facing financial difficulties should consider every option available to them to alleviate their financial problems.

Source: Fashion Times, "Oksana Grigorieva declares bankruptcy," Marc Castro, Feb. 20, 2014