In one important way, singer Dionne Warwick’s Chapter 7 bankruptcy represents the exception, not the rule.
First of all, the singer is more than $10 million in debt. The debt of most clients of the Zuckerberg bankruptcy law offices, whether they are filing personal bankruptcy in Indiana or small business bankruptcy, is much lower than that. The most important difference, though, one I want my Bankruptcy in Indiana readers to notice, has to do with the reason behind the Warwick bankruptcy, which ABC News calls “mismanagement of her finances”.
In these articles I have very often stressed that, contrary to myths about "deadbeats", filing bankruptcy can be the only viable choice for people with circumstances beyond their control. My mission as a debt counselor and Indiana lawyer for bankruptcy is to help those people escape the daily hell of creditor pursuit and use the safety net of Indiana bankruptcy law to make a fresh start. In almost all cases of those to whom I’ve provided help over more than 26 years, there was no “mismanagement of finances”. They are not overspending, they keep their bills paid on time, and they don't rack up huge credit card debts.
Yet these same people may be inadvertently opening the door to someday needing bankruptcy protection themselves. They are actually putting themselves and their families on a track that could lead to bankruptcy. How? Through their dangerous habits. With medical costs being one of the three biggest factors leading to indiana personal bankruptcy, people who do not take care of their health are putting themselves and their families at financial risk.
One dangerous “habit” has to do with not seeking help in time, trying to “duke it out”. I keep urging people to seek out a professional legal advisor at the very first signs of financial trouble. That way, if it turns out that filing individual bankruptcy (or small business bankruptcy in Indiana) is the best course of action, all the proper paperwork can be completed within Indiana bankruptcy law. Starting early means there is a much better chance of the court accepting the bankruptcy petition.
The Business Insider calls it “the dizzying downfall of a bankruptcy diva”. Yet, as one of my Columbus bankruptcy lawyer colleagues comments, Warwick’s downfall is hardly sudden or dizzying. Her debt to the IRS is the result of dues accumulated on tax bills dating back to 1991! Warwick’s attorney blames her financial troubles on a former manager who was fired years ago.
As a longtime debt consolidation lawyer who loves her music, I can only think, “What a pity that Dionne Warwick didn’t seek out bankruptcy help long before the debts reached this point.”
Categorised in: Bankruptcy Indiana
This post was written by Mark Zuckerberg