Celebrity Files Bankruptcy Due to Medical Bills
Medical challenges and debt that have come from sickle cell anemia has forced Watkins to file for Chapter 13 bankruptcy protection for a second time.
Documents filed with the court showed that several factors contributed to the need for her to seek an attempt at financial protection through bankruptcy. The singer has suffered for years with the genetic disease which can cause sudden and frequent hospital stays and excessive medical treatment.
While celebrities filing bankruptcy draw attention, the Federal Court rules still apply. In a Chapter 13 Bankruptcy, individuals get to keep property.
Creditors receive less money than is owed. A debtor offer creditors a payback plan within three to five years. This plan details all transactions and the length of time and payments that will occur.
Repayment starts 30 to 45 days later. Creditors cannot try to collect an individual’s debt except in bankruptcy court. The process takes from between three to six months.
Watkins has also reportedly not been receiving child support and in addition has an upside down home to loan value which has purported to have contributed to the singer’s need for bankruptcy protection
By filing for Chapter 13 personal bankruptcy and not Chapter 7, the R&B performer like anyone else will try to create a plan demonstrating her ability to repay successfully to her creditors. The debt will have some elements eliminated through Chapter 13 bankruptcy while she re-organizes her finances.
Consult with Attorney Eric Lanigan on Bankruptcy Questions
Find out what Chapter 13 bankruptcy protection and a financial reorganization will provide you from Winter Park bankruptcy attorneys Eric Lanigan and Roddy Lanigan.