Charlotte Bankruptcy attorney Bryan W. Stone answers the question: “Can I buy a home after bankruptcy?”
According to a recent report by the celebrity gossip website CeleBuzz.com, former Nickelodeon star Drake Bell is going through some seriously hard times and has recently been forced to file for bankruptcy protection.
The gossip site obtained Bell’s bankruptcy records and discovered that the 27-year-old former star of Drake & Josh has filed for bankruptcy after amassing more than $2 million in debt. Though his Nickelodeon show was popular, it evidently wasn’t a big enough moneymaker to support Bell’s lavish lifestyle.
Bell lists his assets at more than $1.5 million, a seemingly sizable nest egg. However, much of that is real estate and his assets are eclipsed by his $2.2 million in liabilities. Bell says that that his debts include nearly $200,000 in taxes, $1,700 for pool service he is no longer able to afford and much more for mortgages on real estate holdings.
Bell’s problems began last summer when he stopped making payments on his Los Feliz house. The actor purchased the Spanish-style home for over $2 million back in 2007 at the height of his fame, but was unable to keep up the mortgage. The home was eventually foreclosed on and auctioned off last April for $1.4 million.
Bell says he is left with only $4,000 in cash in a bank account, $1,500 in clothes and a 2013 BMW 750i, which is leased. Beyond that, the former child star says he’s no longer able to stay afloat and needs the help of the bankruptcy system to alleviate his financial troubles.
Some have criticized the filing as an example of Hollywood stars’ irresponsible financial decisions. In his bankruptcy petition, Bell notes that his income only comes to a little over $2,800 per month, yet his monthly expenses total more than $18,000. Though much of these bills are loan payments, Bell does admit to spending more than $1,000 per month on eating out, and another $500 per month on clothing and $500 for entertainment.
If Bell really is unable to make ends meet, the reality is that he will need to make some painful cuts to his current lifestyle. Bankruptcy will mean that the actor trims out unnecessary spending on things like clothing and entertainment and instead focuses on paying creditors as much as possible before having his debts discharged.
As part of his bankruptcy, Bell will also be required to attend some credit counseling sessions where he will need to seriously consider developing new and lasting financial strategies to ensure he avoids getting himself into similar trouble in the future. The goal for the counseling sessions is to give people like Bell the tools they need to construct workable budgets so that bankruptcy does not have to repeat itself.
If you find yourself needing the services of a Charlotte, North Carolina bankruptcy attorney, please call the skilled lawyers at Arnold & Smith, PLLC find more resources here. 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.
“Drake Bell Loses $2 Million Home In Bankruptcy,” by Andrea Simpson, published at CeleBuzz.com.
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