On behalf of Law Office of Eric K. Fox posted in Chapter 7 on Wednesday, May 14, 2014.

Hollywood actor Mekhi Phifer has apparently filed for bankruptcy. Phifer is best known for his roles on the television shows “ER” and “House of Lies,” the movie “8 Mile” and for an upcoming role in the film “Divergent.” According to reports, however, the star is having trouble making ends meet. Reports claim that the actor has around $7,500 a month income. However, court documents apparently show that he has monthly expenses of around $11,600.

In addition to this discrepancy, reports are claiming that Phifer owed $4,500 in child support, has $50,000 in lawyer’s fees and owes back taxes of more than $1.2 million. By filing for bankruptcy, some of these debts could be discharged.

Like Phifer, many Tennessee residents likely struggle to meet all of their financial obligations. Job loss, medical crisis, divorce or other unforeseen circumstances can all make it difficult for people to pay their bills. In these situations, debt — including credit card debt — can quickly pile up and make it difficult for people to ever get into the black.

A Chapter 7 bankruptcy can help eliminate debt for many Tennessee residents. In a Chapter 7 bankruptcy, debts are discharged after non-exempt property is sold. In these cases, the court sell certain property and use the proceeds to pay down debt. During the bankruptcy proceedings, people will be free from creditor harassment as a result of the automatic stay that is put into place when the bankruptcy petition is filed.

However, people should know that bankruptcies can be complex. For example, people may have to show that they actually qualify for Chapter 7 protection. Also, there are situations where certain property is exempt from the court and cannot be sold. Tennessee residents should make sure they understand these legal complexities as they try to obtain a fresh financial start.

Source: New York Daily News, “Mekhi Phifer files for bankruptcy, $1.3 million in debt: report,” Chiderah Monde, May 8, 2014