Published on:

Former Teen Pop Star Files For Chapter 7 Bankruptcy Protection

Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “Do I need an attorney to file bankruptcy?”

In yet another example of how quickly times can change, former teen sensation Aaron Carter has filed for bankruptcy, claiming that his meager assets are nowhere near enough to pay his massive debts.

 

microphone Charlotte Bankruptcy Attorney North Carolina Chapter 7 LawyerIt was only 10 years ago that Carter was on top of the world; with several hit singles and a promising career. As the younger brother of Nick Carter, one of the Backstreet Boys, Carter found himself in the spotlight in his early teens. Back in the early 2000s Carter appeared in several Disney television shows, dated teen starlets and toured the world selling millions of albums.

 

Now, at 25, Carter is completely broke. Carter claims that the team in charge of his career seriously mismanaged his finances more than a decade ago. Among his managers was the now infamous Lou Pearlman, creator of ‘NSYNC and Backstreet Boys, who is currently serving a lengthy prison sentence for bilking clients and investors out of hundreds of millions of dollars.

Carter has sued Pearlman several times related to his financial misdeeds, but does not appear to have collected enough to get out from under his massive tax debts. Carter also sued his mother/manager, Jane Carter, several years ago claiming that she had stolen more than $100,000 from his bank account. Carter has since reconciled with his mother, but his financial problems continue.

 

Earlier this month, Carter filed papers in bankruptcy court asking for a Chapter 7 discharge of his debts. Experts say that the Chapter 7 request was likely made because he has so few assets and is not attempting to hold onto anything. Carter says that his liabilities amount to more than $2 million, including an old tax bill to the IRS for $1,368,140. In terms of assets, there aren’t many. Carter lists only $8,232.16 in assets, including computer and music equipment as well as $60 in cash.

 

Bankruptcy experts say that while tax debts are generally not dischargeable, they can be under certain circumstances. For instance, when tax debts are old and were not amassed due to fraud or willful tax evasion, it’s possible that a Chapter 7 bankruptcy might allow for the discharge for the debts, allowing Carter a chance to start over.

 

If you find yourself needing the services of a Charlotte, North Carolina bankruptcy attorney, please call the skilled lawyers at Arnold & Smith, PLLC today at (704) 370-2828. As professionals who are experienced in the bankruptcy arena, our attorneys will provide you with the best advice for your particular situation.

Source:

“Not Too Young, Not Too Old: Aaron Carter Hopes For Fresh Start Following Chapter 7 Bankruptcy Filing,” by Kelly Phillips Erb, published at Forbes.com.

See Our Related Videos From Our YouTube Channel:

http://www.youtube.com/user/ArnoldSmithPLLC?

See Our Related Blog Posts:

What Is A Discharge In Bankruptcy?

Benefits of Chapter 13 Bankruptcy