Pop star Aaron Carter appeared on television to reveal that he is suffering debt problems. The singer opened up regarding his financial issues on Life or Debt, saying that he is in a terrible position financially. The 28-year-old blames his debt problems on poor financial management and getting hit with enormous taxes when he turned 18. In 2009, he was hit with more than $1 million worth of taxes, and he has been suffering from debt problems ever since.
The ex-child star says that he made a mistake signing over his millions of dollars in earnings to his parents’ names, which ultimately kept them from getting sent to jail on charges of tax evasion. On Life or Debt, Carter said that everyone told him he should not take on the brunt of his bankruptcy. The singer says that he has over $150,000 in debts and he doesn’t have any savings.
Carter’s 2013 bankruptcy revealed that the singer held $2,204,854 in liabilities and only $8,232.16 in personal assets. According to Carter’s representative, most of his debt stems from over a decade ago when the singer still a minor and other people were managing his money, and the majority of it relates to tax debts.
Debt problems are never easy, no matter if you are a celebrity, a sports star, a school teacher, a nurse or an unemployed person. Fortunately, in certain circumstances, borrowers can seek debt protection through Chapter 7 and/or Chapter 12 bankruptcy proceedings. After a thorough review of an Arizona resident’s debts, liabilities and current income, a qualified bankruptcy attorney can evaluate what kinds of debt solutions are best for that individual.
Source: US Magazine, “Aaron Carter Opens Up About Being $150K in Debt on ‘Life Or Debt’,” Evan Real, May 11, 2016