Even the rich and famous can have trouble managing finances and finding a way to gain back control of those finances after a certain point. Actor Burt Reynolds is one example. He recently sold his Florida mansion after it was on the market for years; he had declared bankruptcy years ago after falling behind on house payments.
Reynolds owned the 12,500 square foot home since 1980. He bought it for $700,000. The actor accumulated debts of up to $10 million after a divorce and some bad investments. His career also had a lull that may have affected his income. He ended up filing for bankruptcy in 1996.
Initially, Reynolds tried to sell the expansive home for $15 million. It sat on the market for nine years, and he repeatedly lowered the asking price for the residence. He also fell behind on the mortgage payments. He finally sold the residence for substantially less and got $3 million while owing the bank over $1 million in missed payments.
In order to deal with falling behind on house payments and other mounting financial pressures, Reynolds found bankruptcy to be the best tool. For many Florida residents in the same predicament, bankruptcy can be the best way to restructure debt and keep a home while the process unfolds. While some types of bankruptcy may lead to having to go through the home foreclosure process, other types can result in the filer keeping a home; therefore, it is best to investigate which type of bankruptcy filing may be in the best interest of the filer based on that person’s unique situation.
Source: realtytoday.com, “‘Burt Reynolds’ Net Worth: Legendary Actor Finally Sells Home He’s Lived in Since 1980“, Sept. 14, 2015