What if a Musician Files Chapter 7 Bankruptcy?

Creative individuals view the world through different eyes. Artists, musicians, and writers often interpret how they see things through their chosen median. Getting caught up in a money jam can happen to anyone, even those who plan and save. However, with easy access to credit these days, getting buried in debt may spell ruin, even for a talented artist. If debt gets too deep and cash flow restricted, filing for bankruptcy may be the only way to get things back on a firm financial footing.

Chapter 7 Bankruptcy Basics

A Chapter 7 bankruptcy filing may help lighten the load for someone who is buried under the crushing weight of creditors. It is one way that someone can wipe the slate clean and start over fresh. In Chapter 7, creditors receive notice of a person’s inability to pay. Collection efforts stop once the filing goes into effect. In this process, a person’s debt is calculated and measured against the value of their assets. Often in these situations, assets are too minimal to pay off all the outstanding creditors. When this happens, the court decides who gets paid first. Once the money is out, the remaining debt is cleared. You may want to speak with a chapter 7 lawyer orlando fl to find out if you qualify.

Implications of Chapter 7 on a Musician’s Future Endeavors

Chapter 7 can devastate a credit score and history. Since it discharges debts, releasing someone from obligations, it remains on a credit history for 10 years. This may disqualify a musician from receiving personal loans for businesses or from purchasing a studio space. Lease terms may even require more upfront cash to ensure creditworthiness for the short and long term. Expect to pay a little more if you go this route.

Bankruptcy can help get better control over finances, releasing a person from credit card debt that continues to burden them. Weighing the pros and cons is an essential first step in making this decision.