Charlotte Bankruptcy attorney Bryan W. Stone answers the question: “What are the pros and cons of bankruptcy?”
Famed country singer Eddie Montgomery, one-half of the band Montgomery Gentry, announced that he had filed for personal bankruptcy earlier this week. The papers filed with the federal bankruptcy court in Lexington, KY note that Montgomery has an estimated $13.4 million in debts and another $1.9 million in assets.
The bulk of Montgomery’s debts are related to a failed steakhouse that was closed earlier this month after falling behind on payments. Montgomery owes over $8 million in connection with Eddie Montgomery’s Steakhouse, which was opened in 2009 by Montgomery and his then wife, Tracy Nunan. The restaurant is now scheduled to be sold later this month to repay some of the debt.
Montgomery is also selling a house in Boyle County, KY that sits on 273 acres of land. Montgomery is selling that piece of property for $1.25 million. The bankruptcy filing appears to be the result of financial trouble with the restaurant and also expenses related to Montgomery’s recent divorce.
Montgomery’s attorney said that the divorce and the business trouble have led to incredible financial strain for the singer. In hopes of getting out from under the massive pile of debt, Montgomery decided to file for Chapter 7 bankruptcy relief.
Sadly, Montgomery’s case illustrates the painful truth that issues like the failure of a business or a marriage can often lead to other troubles, including bankruptcy. When a business fails and the owner signed onto loans personally, this additional financial burden can prompt a bankruptcy filing. Same thing with divorce, which can lead to the splitting of what little assets you have and force financial problems to the surface.
Divorce and bankruptcy can often appear to go hand-in-hand, with money problems leading to divorce and marriage trouble leading to financial difficulties. Though it might sound tempting to file for divorce and leave your troubles behind, it’s critical to understand that a divorce does not excuse you from paying bills that were accrued jointly.
Though a divorce agreement may assign responsibility for bills to your spouse, that agreement is between you two and does not bind the creditor who can still collect the money from either party (assuming you were both named on the debt). This means if your spouse fails to pay bills, you might still find yourself on the hook, even if the divorce agreement says you’re not.
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.
About The Author:
Bryan Stone is a Partner with Arnold & Smith, PLLC where he focuses his practice on all aspects of bankruptcy, including: Chapter 7, Chapter 11, Chapter 13, home loan modifications and landlord tenant issues. Originally from Macon Georgia, Mr. Stone attended the University of Georgia for a BBA in Banking and Finance and went on to Wake Forest to earn his law degree. After law school Mr. Stone relocated to Charlotte where he has become quite involved in many local organizations. He is currently the Chair of “Bravo!” the young professionals organization of Opera Carolina, he also founded the UGA Alumni Association of Charlotte. In his spare time he enjoys perfecting his BBQ skills for the annual “Q-City BBQ Championships” and playing softball with the Mecklenburg County Bar Softball League.
“Country singer Eddie Montgomery files for bankruptcy,” by Janet Patton, published at Kentucky.com.
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