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Musician's Chapter 7 filing clears debts to IRS, fellow artist

Financial hardship can strike anyone, rich or poor. While that may sound like a contradiction, consider all of the once rich and famous individuals who have filed for bankruptcy in the recent past.

Massachusetts readers may be familiar with recent bankruptcy of Tennessee rapper Young Buck. The rapper recently completed his Chapter 7 bankruptcy after struggling with overwhelming debt owed to the IRS, the New York State Tax Department, and even fellow artist 50 Cent. A record label was seeking $10 million from the young artist. With the completion of his Chapter 7 bankruptcy, however, Young Buck will emerge from prison debt-free

Individuals struggling with financial challenges often choose Chapter 7 bankruptcy to alleviate the burdens of overwhelming debt and creditor harassment. For those unfamiliar with the process, Chapter 7 allows most consumers to get rid of their debt through a process known as liquidation. In this process, a bankruptcy trustee is placed in charge of the debtor's bankruptcy estate to decide which assets are eligible for sale. If an asset is eligible it is sold to pay creditors. Once the process is concluded, remaining debts are canceled.

There are many benefits to filing for Chapter 7 bankruptcy. In addition to extinguishing debt, Chapter 7 will stop wage garnishment and creditor harassment in its tracks. While the decision to file for Chapter 7 may not be for everyone, it is important that consumers know there are debt relief options available. If a consumer is struggling with overwhelming debt, Chapter 7 may provide the fresh financial start they need.

Source: Hip Hop DX, "Young Buck To Emerge From Prison Debt-Free," Danielle Harling, Sept. 19, 2013

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