Fame does not always provide insulation from debt problems, as people in New Jersey and across the U.S. recently learned when country singer Eddie Montgomery filed for bankruptcy in federal bankruptcy court. In the court filing, Montgomery listed $1.9 million in assets against $13.4 million in debts, mostly stemming from a failed restaurant venture and personally guaranteed. That restaurant will be sold in a court-ordered sale to help cover unpaid obligations.
Montgomery and his then-wife opened the restaurant in 2009 and have since divorced. Also likely to be liquidated to help pay the debt is a home on 273 acres of property in Boyle County, Kentucky, which is listed at over $1 million. As stated by Montgomery’s lawyer, the combination of the prior divorce and the failed business venture forced the chapter 7 bankruptcy filing by his client.
Montgomery and his music partner, Troy Gentry, formed the country music duo of Montgomery Gentry and had several hit songs from 1999 to 2008. During their years of popularity they were nominated for several music industry awards, regularly toured and enjoyed a sponsorship arrangement with Jim Beam distillery. Despite the success in the music world, Montgomery had little recourse but to file for bankruptcy protection.
The need to file for bankruptcy can cover all grounds and situations. From the famous and formerly rich to those of modest means, financial problems can cause a situation from which a bankruptcy filing may prove to be a viable road to recovery. Whether the obligations are caused by credit card debt, medical debt, a failed business or a divorce, a bankruptcy lawyer may be able to determine whether there are forms of debt relief that are available and appropriate for a client’s particular situation.
Source: Kentucky.com, “Country singer Eddie Montgomery files for bankruptcy“, Janet Patton, January 02, 2014