Irony has a funny way of rearing its head. One of Kanye West’s most successful songs is called “Gold Digger”. The song details the lives of people that use other people just for their money. In a strange twist of fate, Kanye West now seems to be doing the very thing his song criticizes. News reports from this past weekend state that Kanye West owes nearly $53,000,000.00. In an effort to ease his financial problems, Kanye West reportedly reached out to Facebook creator and multi-billionaire Mark Zuckerberg for financial help. While the average individual does not have this much debt, the burden and stress can be just as heavy no matter the amount.
Like Kanye, you may have had some bad luck or made some unwise decisions regarding your finances. It could have been a failed business venture, a divorce, a major medical event, co-signing for someone or maybe you have just too many credit cards. Generally, you can file a Chapter 7 or Chapter 13 Bankruptcy as an individual. Under 11 U.S.C. §109(e), one requirement to be eligible to file a Chapter 13 debt consolidation bankruptcy is that your total debt has to be less than the “debt limit”. The current debt limit to qualify for Chapter 13 Bankruptcy requires that you owe less than $383,175 of unsecured debts and less than $1,149,525 in total secured debts, including your house and car loans. If Kanye personally owes $53,000,000.00, he will not be able to file a Chapter 13 Bankruptcy, but instead would have to do a Chapter 7 liquidation bankruptcy or Chapter 11 reorganization bankruptcy. Fortunately, most people, unlike Kanye, do not exceed the debt limits for filing a Chapter 13 Bankruptcy. Consolidating your bills into one affordable payment, while catching up late payments on your house and cars, is possible through a Chapter 13 debt consolidation bankruptcy.
If you have creditors or collections agencies calling you, sending you threatening letters or suing you, bankruptcy may be the best way to take care of the stress. Not everyone has celebrity connections to get themselves out of debt. If you are struggling financially, contact one of our offices today for a free consultation to discuss whether bankruptcy is the right answer for your debt problems.
Heather Ellis Banks is an Associate Attorney at the Bond & Botes Law Offices in Knoxville, Tennessee. She holds a Bachelor of Science from the University of Tennessee Knoxville, and a Juris Doctorate from the University of Memphis, Cecil.C. Humphreys School of Law. She has been helping consumers to navigate through the bankruptcy process since 2005. Read her full bio here.