Online news source TMZ announced yesterday that Gary Busey's chapter 7 bankruptcy, filed in March of this year, had concluded with a discharge of debt (totaling $57,303.63) and allowing him to keep his assets (valued at roughly $26,000). The debt load wiped out was to various creditors, including banks, utility companies, and doctors.
Unfortunately, that is the good news. The bad news is that he still owes $451, 297.33 in state and federal taxes that he could not discharge. Thus bankruptcy is only his first step on the road to financial recovery. He must now reach for other remedies for his financial woes.
A bankruptcy discharge wipes out quite a bit of debt, but some can stick around, like taxes and student loans. Those with lingering tax liabilities can often submit an Offer in Compromise to the IRS to work something out, so Mr. Busey is not without remedy. As for student loans owed to the federal government, they can often be addressed through different payment programs.
This case is a good example of what bankruptcy can do and what it cannot. Those considering filing it need to look at every aspect of their financial picture to see what remedies need to be brought to bear. Mr. Busey's struggle continues. As he told TMZ, "My new hobby is just breaking even." Yep, just like the rest of us in this economy!
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