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Singer files for Chapter 7 bankruptcy in search of debt relief

Debtors anywhere, including Tennessee, can learn a thing or two from the recent troubles of country singer Eddie Montgomery. Because his reported debts of $13.4 million far outweigh his assets of $1.9 million, the singer recently filed for Chapter 7 bankruptcy. His debts reportedly stemmed from a bankrupt restaurant, Montgomery's Steakhouse in Harrodsburg, Kentucky, which is currently for sale. Proceeds from the sale will be used to pay off the debts from different creditors.

Montgomery gained fame in 2000 as part of the duo Montgomery Gentry. He and partner Troy Gentry had a string of bestselling country albums; the duo's latest was released in 2011. Montgomery started his restaurant in 2009 with his wife, who has since filed for divorce. Montgomery's lawyer says both the divorce and the business closure led to insolvency.

Unexpected occurrences like divorce, serious medical conditions and unemployment can drive a person to numerous financial challenges. Over time, debts can become insurmountable. Fortunately, Tennessee residents who have huge amounts of debt can search for and find debt relief.

Chapter 7 bankruptcy is one of the most common type of bankruptcies applicable to individuals. Under Chapter 7 bankruptcy protection, some but not all property and assets are liquidated to pay off debts. Some properties and assets are protected from liquidation. Once assets are sold to pay off debts, any remaining debt may be forgiven.

In Tennessee, local residents who are seeking debt relief can use Chapter 7 as a way out of their financial problems. Before filing for bankruptcy, however, a debtor should fully understand the pros and cons of the legal process. A debtor should speak first with a qualified legal professional who can provide detail on Chapter 7 proceedings and offer other options that could bring debt relief and lead to a fresh financial start.

Source: Kentucky.com, "Country singer Eddie Montgomery files for bankruptcy," Janet Patton, Jan. 2, 2014

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