A typical idea of what makes up “fame and fortune” requires us to look at the world of celebrities, sports figures, and pop stars. As favorite celebrities’ stars start to rise, so does their wealth and accumulation of things. Most superstars make super paydays and use those funds to buy houses across the country and outside of the states, as well as make luxury car and jewelry purchases. This is not to say that the super-rich don’t also give to charity and lend a helping hand, but the fact of the matter is that a celebrity has a lot more property than the average person. But even stars can be hit with tough times financially, and when that happens certain choices have to be made. If a celebrity files for bankruptcy, you might be wondering if they will be able to hang on to most of their assets, and if so, how?
Once the decision to file bankruptcy has been made, you have to decide what things you need in order to maintain a basic standard of living. For most of us, this means a house and a car. But for a celebrity, it might mean things like personal chefs and trainers as well as houses and cars. So how does it all work? How can you keep luxury items if you file for bankruptcy? Here are a few things to know:
• If you agree to keep making the payments for an item, you are generally allowed to keep that piece of property.
• An agreement to keep a piece of collateral is called a reaffirmation agreement, and the Court does have the ability to inquire into your ability to make the payments you’ve agreed to within a reaffirmation agreement. This analysis requires evidence of your income and other debts, so a determination can be made as to whether continued payments are a financial hardship on you.
• When you are able to eliminate or reduce other debt, you free up money to put towards repayment of reaffirmed debts.
Each bankruptcy case is unique, because each person that files has a unique financial situation. The rules are designed to take your personal financial condition into account, so what you are able to keep depends on your specific situation. In the case of a celebrity who files for bankruptcy, their case is determined the same way; based off of their personal finances.
For more information about bankruptcy, contact us today at www.DsouzaLegalGroup.com. We will go over the facts of your case and let you you’re your next step.