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Singer Dionne Warwick files for Chapter 7 bankruptcy

As many Chattanooga residents know, even the rich and famous are not immune to financial challenges. The most recent star who is struggling with debt is Dionne Warwick, who just recently filed for Chapter 7 bankruptcy.

The singer, known for many songs from the 1960's, just filed for Chapter 7 and is down to her last $1,000 cash. In addition to the $1,000 of cash on hand, she has some furniture and clothing that only total around $1,500. The singer owes over $10 million in taxes -- $7 million to the IRS and over $3 million to the state of California. In addition to the taxes, she owes over $500,000 to an attorney and a business manager. As for her back taxes, the taxes themselves were repaid but she still owes penalties and interest which continue to accrue. As for income, she receives $20,950 a month and is also eligible for a pension.

Though the amount owed by Ms. Warwick may be a bit higher than most people, those who need debt relief are in the same type of situation as the former pop star. They have significant personal debt that is owed without much chance of ever being able to pay it back. They also often have creditors harassing them almost nonstop and constantly are trying to cope with the mounting debt.

Filing for Chapter 7 for individuals is one sure way to stop creditor harassment. Further, it is a way to get a fresh financial start, often by erasing all or almost all debt that is currently owed. For those who are facing financial debt, seeking assistance is often necessary to relieve the crushing burden. Once that help is sought out, the burden can often be lifted for a fresh start.

Source: CNN, "Dionne Warwick, down to $1,000 cash, files for bankruptcy," Alan Duke, March 27, 2013

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