Iggy Azalea has tax, credit card debt
Florida fans of the rapper Iggy Azalea might have heard that she could be having some financial problems. She owes almost $300,000 in credit card debt and is being sued by American Express. The credit card company reports that this sum is over $250,000 more than the limit on the card.
Azalea has also had trouble with the IRS. She failed to pay her taxes for 2014 although she earned a significant amount of money. She owed more than $390,000, and in April 2016, she faced a tax lien.
However, Azalea said the information was only released because she was having issues with her former partner. She also said that she had been given a choice between paying monthly or a lump sum and that she had chosen a monthly amount but that did not mean she was having financial issues.
A person in a similar situation with income, debt and assets to protect may want to consider a Chapter 13 bankruptcy. A Chapter 13 bankruptcy allows a person to create a plan to pay back creditors over three or five years and keep assets. Tax debts cannot be discharged in a bankruptcy, but restructuring debt and creating the payment plan may help a person free up money to pay off taxes. Filing for bankruptcy may have other advantages as well. For example, it puts an immediate stop to creditor harassment or any actions toward the debtor. Many people struggle with bankruptcy due to credit card debt after a job loss or medical emergency. An lawyer may be able to review a person’s options for debt relief relief and discuss the potential consequences of bankruptcy.
Source: International Business Times, “Iggy Azalea Sued For Not Paying $300,000 Credit Card Bill“, Catherine Armecin, Oct. 6, 2017