Texans know that anyone can face financial trouble, and many people do at some point in their lives. The trouble might be from a medical emergency or from taking on too much credit card debt or too many loans. Although trying to renegotiate debt is always an option, the effort may not always be successful.
Sometimes celebrities get themselves in over their heads and face the same problems that the average person does. A case in point is Teri Polo, the actress who has been in both TV shows and the "Meet the Parents" movies with Ben Stiller. Polo recently filed for Chapter 11 bankruptcy after becoming deeply in debt to the tune of nearly $810,000 to the Internal Revenue Service, almost $745,000; the tax revenue agency of her home state, $27,000 and a few major credit card companies, $37,000.
The actress's troubles are compounded by the fact she has less than $50,000 in assets and a lawsuit from a former landlord who is alleging she left $30,000 in damage to her old apartment.
People who face massive debt are often constantly worried about repayment as well as meeting daily expenses. Debt-repayment strategies and loan renegotiations are not only possible but also advisable when debts are relatively low, but when the amount of debt is beyond anyone's ability to pay in the foreseeable future, the best course of action may be to file for bankruptcy.
Chapter 11 bankruptcy is primarily intended to allow businesses with heavy debts to reorganize so they can pay those debts under a court-approved plan. Sometimes consumers can file Chapter 11 so they have time to develop a plan that includes some repayment, some debt dismissal and some renegotiated debts while creditors are kept at bay. A qualified legal professional can guide someone needing this debt relief through the process.
Source: Huffington Post, "Teri Polo Files For Bankruptcy After Racking Up Nearly $1 Million In Debts," April 23, 2014