Actor and author Sinbad has filed for Chapter 13 bankruptcy, seeking relief from various consumer and tax debts. This is the second time Sinbad has filed for bankruptcy, the first time was back in 2009 but he did not successfully go through the process because his paperwork was not complete or filed properly.
Filling out the paperwork accurately and going through the proper process is an essential part of filing for bankruptcy and having access to debt relief tools like loan modifications and debt discharges. This is one reason why many people choose to engage an experienced Chapter 13 attorney to make sure that no paperwork is missing and everything is in order for the appropriate court appearences and hearings.
The actor says that the bulk of his debt comes from $8 million that he owes the IRS. Since many actors and musicians work for themselves, they are responsible for withholding or saving an appropriate amount of money to cover their income tax obligations. Like other independent contractors or small business owners, it is easy to run into serious financial trouble if tax day arrives and you don’t have the funds to pay the bill.
Sinbad also owes several hundred thousand dollars for credit card charges that he says he is unable to pay with his current income. The actor still has quite a few assets including some luxury vehicles which he may have to sell as a part of the bankruptcy process to fund repayment of some of the debts.
Source: Examiner, “Sinbad bankrupt: Sinbad files for bankruptcy for a second time,” Effie Orfanides, May 20, 2013.