Former Supermodel files for bankruptcy
Former supermodel and reality television fixture Janice Dickinson has filed for bankruptcy, telling reporters that the filing is an effort to fix her finances and pay back her creditors. The total amount that she owes is said to be about $1 million.
Like many Atlanta residents who are facing financial difficulties and considering bankruptcy, the former supermodel has several different types of debt that she says she is unable to pay. One source of overwhelming debt is in the form of tax debt, which is often very difficult to have discharged in a bankruptcy proceeding. In some cases it may not be possible to discharge tax debt, but there are some possibilities under Chapter 13 to reduce the total amount or under Chapter 7 to try to have the debt wiped out entirely. Whether or not Ms. Dickinson’s tax debt can be discharged in her bankruptcy proceeding will depend largely on her specific circumstances. If it is not, she may be able to create a payment plan to make the obligation more manageable.
The former America’s Next Top Model judge also has some medical debt to contend with in the bankruptcy process. According to reports, she owes thousands of dollars to a dermatologist. Unlike tax debt, medical debt is typically dischargeable in a bankruptcy filing under Chapter 7 (it is treated similarly to credit card debt). A payment plan to pay off linger medical bills is also available under Chapter 13 if the debtor has the funds or income to meet a portion of the obligation.
Source: Los Angeles Times, “Former Supermodel Janice Dickinson files for bankruptcy,” Nardine Saad, April 23, 2013.
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