Arizonans who follow celebrity news may have heard that Kelly Rutherford, an actress from the popular show "Gossip Girl," is reportedly filing for bankruptcy after a custody battle and a divorce. The actress is reportedly looking at almost $2 million in legal fees and other costs associated with her divorce and custody issues. It is also reported that her income level has dropped substantially and that she is presently making under $1,300 a month whereas she was previously making $486,000 a month.
Her children are currently living in Monaco with her husband, and part of her costs are the result of the travelling expenses between the two countries. The actress had initially asked that her husband pay the legal fees but it has now been announced that she is considering Chapter 7 bankruptcy as a method to resolve them instead. The actress is also reported to be in debt to the government for taxes, and her assets are reported to be extremely limited.
Rutherford has reported that she only has $1,500 in jewelry, $10,000 in physical assets and $12,000 in cash in her checking account. She has also stated that she has had to take out loans from her friends in regards to her debt.
She has a combined $23,500 assets in her possession, according to her statements, and over $2 million in debt due to her legal fees. This makes her an excellent candidate for Chapter 7 bankruptcy, which will allow her to dissolve her assets and debts. What is left of her assets will be paid to those she owes and the rest of the balance will have to be wiped out. Anyone, including Arizona residents, can attempt a Chapter 7 bankruptcy if their debt so far exceeds their assets that they will not be able to manage paying it off. A bankruptcy lawyer could help them through this process.
Source: NY Daily News, "Kelly Rutherford files for banruptcy after costly divorce, custody battle", Zayda Rivera, June 24, 2013