When celebrities file for bankruptcy, it can be a reminder that even those who seem to live lavish lifestyles can suffer from financial woes. A significant income is not always a sure buffer against overwhelming debt, and for those struggling to make ends meet and stop foreclosures, bankruptcy may be a viable option.
Former “Baywatch” star Nicole Eggert filed for Chapter 13 bankruptcy in September of last year. This was her third time filing in less than a year, but her previous attempts were dismissed. In the most recent filing, the star reported that her total assets were $1,076,400. That total includes an $870,000 house in California, a $130,000 pension from the Screen Actors Guild, $5,500 in clothing and furniture, a 2008 VW Passat, $65,000 in a business account and $400 in a personal checking account. She also listed that she receives $766 in monthly child support payments.
Eggert reported that she makes just over $15,000 per month and receives residual payments totaling $7,000 a year, but claims that her monthly expenses total just under $16,000. According to court documents, she spends $3,000 a month in childcare and another $2,000 a month on management fees. She claims that once her expenses are paid, she is left with just under $800 a month to live on.
According to records, Eggert is now also $60,000 behind on her house. A judge agreed to let her pay $1,071.43 a month for the house to the bank and $800 a month to creditors for the span of one year. After that, she will pay just over $1,300 a month for four years. The agreement is designed to make it easier for Eggert to keep her home, while still making payments on her debts.
A similar debt repayment plan may help those trying to stop foreclosure or keep their other assets. Chapter 13 is different from Chapter 7, which is a total liquidation of assets. An experienced bankruptcy attorney may provide more information about which options are available depending on one’s unique financial situation.
Source: Radar Online, “Drowning In Debt! ‘Baywatch’ Star Nicole Eggert Files For Bankruptcy” No author given, Jan. 31, 2014