Producer files for relief from a variety of debts
Florida music fans may not already know that producer Jazze Pha has filed for Chapter 13 bankruptcy claiming that he is $625,000 in debt. That is compared to less than $590,000 in assets including two music companies each worth $1,000 as well as electronics worth an estimated $1,000. He also owns a 2010 and 2015 Escalade as well as a home in Georgia.
Court documents show that he earned $65,000 in 2015 as well as $30,000 so far in 2016. His liabilities include a nearly $72,000 owed on the two cars as well as $252,000 in back taxes to the IRS. He also owes $310,000 to SunTrust Mortgage for his home in Georgia.
When filing for bankruptcy, a debtor may have the choice to file for Chapter 7 or Chapter 13 bankruptcy. The type of bankruptcy that an individual files for depends on a variety of factors. Those who have significant assets may be required to reorganize their debt as opposed to having it liquidated. However, there may be several advantages to bankruptcy regardless of the type of protection it may provide.
For instance, bankruptcy entails an automatic stay of creditor contact, which means that most creditors may not take any action against a debtor. If a debt is discharged, creditors cannot pursue the debt any further. In a Chapter 13 case, discharge may occur within three years. An lawyer who focuses on bankruptcy law might be able to help a debtor understand his or her options and what type of bankruptcy may best meet his or her needs.