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Country singer filing for Chapter 7 bankruptcy protection

Maryland residents familiar with country music may recognize the subject of today's article, which focuses on the individual bankruptcy of a member of the hit band Montgomery Gentry. Eddie Montgomery, one-half of the famous duo, has filed for personal bankruptcy, seeking Chapter 7 bankruptcy protection in the state of Kentucky. Official reports show that the man's assets are valued at $1.9 million, while his liabilities are estimated at $13.4 million.

News article say that the man's debts are largely attributable to a failed restaurant in the area. The man had invested in a steakhouse, which closed its doors in May 2013. That facility is slated to be sold in mid-January. Official reports show that the money earned from that sale will be used to pay for $12.7 million in liabilities to a Lexington bank. Profits from that sale may also be used to resolve other restaurant-related claims. Further, it appears that the man will lose his home, as his $1.16 million house will be surrendered to banks in connection with the bankruptcy.

The singer in this case has chosen to file for Chapter 7 bankruptcy relief because of his loss of the restaurant, along with the divorce that preceded that incident. The property division aspect of his divorce may have caused additional financial distress. Attorneys in the case say that people who are dealing with both divorce and business closure are often more likely to seek bankruptcy protection if they find themselves struggling with debt.

It is clear from this article that even celebrities and highly regarded public figures can also run into financial trouble. This is especially true after major life events, such as the loss of a business or a change in marital status. Individuals who may be facing similar circumstances may benefit from consulting a qualified bankruptcy attorney, who can help them learn more about their rights in a Maryland courtroom.

Source: The Lexington Herald-Leader, "Country singer Eddie Montgomery files for bankruptcy" Janet Patton, Jan. 02, 2014

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