Almost 10 years after the recession, our country is still recovering from financial turmoil and celebrities are not immune. Even some of the most highly revered superstars, including Larry King, Toni Braxton, 50 Cent, and now even Lil' Kim, are a part of the club proving that the IRS isn't scared of sh*t, even the Queen Bee.
42-year-old rap star filed for Chapter 13 bankruptcy last month following the foreclosure of her 600,000 square-ft mansion in New Jersey due to deficit mortgage payments totaling more than $1.47 million dollars. She's in a position that most women face at some time in their adult lives. We live in an age of constant economic distress for even the highest earners, and due to the financial landscape and our choice in livelihood, our income may decrease, but our expenses do not.
Bankruptcy has been given a bad rap, and although filing has some long lasting effects, it may be a great option for the woman drowning in debt with no life jacket in sight.
Kim's income has dropped nearly $500,000 since 2016 and her remaining balance is barely enough to afford her lifestyle, which has forced the queen herself to bite the bullet and give in to the B word.
Bankruptcy has been stigmatized to seem like something that only happens to poor people that mismanage their money, but this assumption is false. Quite honestly, we're all only a couple Chic-Fil-A visits from being snatched up by Uncle Sam, so it's important that we know everything there is to know about filing for bankruptcy if it's ever necessary:
Bankruptcy is a Good Thing
Those student loans aren't going to pay themselves, and bankruptcy can actually help you one day. By filing for bankruptcy, an individual is essentially petitioning to the court to discard or create a payment plan for any unpaid debts.
There's More Than One Kind Of Bankruptcy
The "Ladies Night" rapper filed bankruptcy under Chapter 13, which allows her to submit a payment plan based on her current income to prevent her home from foreclosure and has a number of other advantages. Although this route is the most advantageous for Kim, if you find that you are are ineligible, there are other options to consider when filing for bankruptcy including Chapter 7 and 11.
Get a Lawyer
There's plenty of literature available for people that want to learn about filing bankruptcy, but it would definitely help to have an expert on your side. Check Google for the nearest bankruptcy lawyer in your area and get that debt all the way together, girl.
Your Credit Will Take a Blow
One of the worst things about filing for bankruptcy is having it on your credit report for up to ten years. And say goodbye to those credit cards. You'll lose them for up to three years and when you try to apply again, your interest rates will have skyrocketed. It's important that you only make the decision to file bankruptcy after you've evaluated your other options.
Have you filed for bankruptcy? Did it help you or hurt you in the long run? Let us know in the comments!
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