Economic uncertainty can hit anyone at any time. People can face unexpected expenses, loss of income and other financial difficulties. In these situations, a Chapter 7 bankruptcy can help to eliminate people’s debt and stop creditor harassment.
According to recent reports, famous author Zane has filed for bankruptcy. The popular author writes erotica and has been on the New York Times best-seller list 26 times. She is also the executive producer of “Addicted” — a new movie based on one of her books that is supposed to be a box-office hit.
Despite this success, reports claim that Zane owes 10 years’ worth of back taxes for unreported income. In fact, reports say that the woman owes over $540,000 in taxes. Her home state has apparently been trying to collect this money since 2003.
In her bankruptcy petition, the author claims to have debt of over $3.4 million. However, she claims to only have assets of $1.4 million which includes her two homes.
A Chapter 7 bankruptcy can help Tennessee residents that are struggling with a lot of debt. In a Chapter 7 bankruptcy, the bankruptcy trustee will place peoples’ assets into the bankruptcy estate. Then, non-exempt assets will be sold to pay creditors and the remaining debt will be discharged. However, in many cases, peoples’ personal property will safe from sale under bankruptcy exemptions.
Bankruptcy law can be a complex area of the law. There are exceptions that people need to understand that can keep people from getting a discharge of debt. Furthermore, people must prove that they qualify for relief under Chapter 7. Therefore, people need to explore all their legal options before deciding if bankruptcy is right for them.
Source: NBC Washington, “Best-Selling Erotica Novelist Zane Files for Bankruptcy,” Oct. 6, 2014