At some point in time, most Americans will face financial challenges. Whether those struggles come from credit card debt, medical expenses or unexpected life changes, the financial challenges can impact a person's financial situation and stability. Even celebrities, including recording artists, are no different when it comes to overwhelming debt.
Take, for example, the recent headlines that remind many people, including those in Tyler, Texas, of the R&B group "Next." According to the reports, RL, the former lead singer of the group, is facing financial difficulties and has filed for personal bankruptcy.
The artist listed only about $3,500 in assets and is struggling financially to make ends meet. Apparently, he owes over $116,000 to three different parties: the Internal Revenue Service, credit card debt, and child support. Allegedly, RL owes the IRS $49,000 and has accumulated $61,000 in American Express credit card bills. Aside from those two, the former pop star has $6,000 in unpaid child support. Clearly, the $50 in his pocket, together with personal items like a bedroom set, clothes and recording equipment worth $3,500 are not enough to pay all of his financial obligations.
RL turned to personal bankruptcy for relief. According to court documents, the entertainer only earns $777 per month as a self-employed recording artist but has monthly financial obligations of over $1,100. RL's publicist stated that he did not lose or squander the money he earned during his glory days but trusted the wrong person with his money, his previous accountant, who is now deceased.
Financial woes can be a substantial roadblock in life. Fortunately, personal bankruptcy gives people a chance to get back on their feet and start over in the event that they are experiencing certain financial challenges. Personal bankruptcy, either by Chapter 13 or Chapter 7 bankruptcy, may wipe out all of the unsecured debts and create manageable repayment plans.
Source: Michigan Chronicle, "Next Lead Singer RL Faces Financial Woes & Files for Bankruptcy," Sonya Eskridge, Sept. 18, 2014