Actor Gary Busey has reportedly filed for bankruptcy after falling into financial distress. The 67-year-old star of TV and movies, including "Lethal Weapon," is seeking a fresh start under chapter 7 of the bankruptcy code. Busey reportedly is burdened with debts in the $500,000 to $1 million range, but only has assets amounting to $50,000 or less.
Economic statistics come in all forms. Since the economic crunch hit the nation's economy, the news has been full of stories showing ups here and downs there. Recently, the American Bankruptcy Institute announced that the number of bankruptcy cases filed nationwide fell slightly during the first nine months of this year.
In February, this blog discussed a provision of U.S. bankruptcy law that allows for a hardship discharge in a chapter 13 bankruptcy case. The 2005 changes to the bankruptcy code were intended to force more Americans into chapter 13 proceedings versus chapter 7. The code sets up a "means-test" that generally determines whether an individual, or married couple, qualifies for a chapter 7 bankruptcy, or whether the petition must proceed under chapter 13 of the code.
Recent research suggests that the sweeping bankruptcy reform laws enacted in 2005 is a factor in the increase in foreclosures across the country. Cincinnati bankruptcy attorneys know that filing for bankruptcy can in many cases allow a distressed homeowner to retain their home.
The United States Supreme Court issued a ruling in a chapter 13 bankruptcy case this week. The case centers on the allowance a debtor is entitled to claim for automobile ownership expenses in creating a chapter 13 bankruptcy repayment plan. A chapter 13 payment plan allows an individual to take certain deductions from their income for reasonable necessary expenses to calculate the individual's projected disposable income. A payment plan typically lasts between three and five years.