Dallas readers might have been familiar with the child pop singer Aaron Carter, the younger brother of Nick Carter from the Backstreet Boys. A bankruptcy coming from a celebrity might seem surprising, but in this case it explains a lot about what happens when you come into money too young and aren't paying taxes when you should.
According to the news from Nov. 21, the singer has filed a petition for bankruptcy that would help him shed over $2 million in debt. The debt is primarily tax debt, according to the news, that was owed from when Carter was a singer in his youth. According to the Chapter 7 petition, Carter owes his publicist over $9,000, and he is believed to owe $1.3 million in taxes to the IRS from 2003.
It may seem like the pop star would have the money to back up these fees, but according to his publicist, he's not making the kind of money people would think. He allegedly had only $917 in his bank account when he filed for the bankruptcy claim, and his savings allegedly has only $5. His bankruptcy petition claims that he has little to show for his success in his teens.
Although he is filing for bankruptcy, he is also working, according to his publicist. He has performed in over 400 performances in the off-Broadway cast of "The Fantasticks" last year, and he is on a tour over 75 cities through the United States at present. The bankruptcy petition says he only gets around $2,000 for the performances each month, and he will not be earning anything after December for those tours.
Bankruptcy can affect anyone, even those who have seen success. If you're facing bankruptcy and want to look at your options, an experienced attorney may be able to help.
Source: KETKNBC, "Bankruptcy filing 'very positive' for Aaron Carter, publicist says" Stacey Spivey, Nov. 21, 2013