Mekhi Phifer finds way to stop creditors

On behalf of Bankruptcy Law Firm of Clare Casas on Friday, May 9, 2014.

Mekhi Phifer, known for his roles in "ER," "House of Lies," "8 Mile" and a minor role in the newly released action movie "Divergent," has filed for bankruptcy. It is reported that the actor owes at least $1.2 million in back taxes. By filing for bankruptcy, Phifer, as many other people in Florida, could stop creditors in order to gain control of his life again.

It is reported that in April, when the actor filed for bankruptcy, he not only owed back taxes but was also $4,500 behind on child support and owed lawyer fees of $50,000. Despite only earning $7,500 a month, it appears that the actor's expenses are approximately $11,600 per month. It is not clear if the actor is filing for a Chapter 7 bankruptcy or a Chapter 13 bankruptcy.

Chapter 7 bankruptcy discharges unsecured debts and offers protection against creditor harassment. On the other hand, Chapter 13 bankruptcy offers a reorganized payment plan for those who have a steady monthly income. Opting for one of these possible solutions may provide consumers with a chance to make a fresh start.

The filing for bankruptcy by the actor illustrates the financial vulnerability of other American consumers. It is so easy to become overwhelmed by debt due to living beyond one's means, for debt to pile up and for debt collectors to start knocking on one's door. Like the actor, there comes a time when one has to take a hard look at the facts and make a conscious decision. For some consumers in Florida, bankruptcy protection may be the best option for stopping creditors. An evaluation by an expert may be the best way to determine the most beneficial path to take in order to stop creditors and get rid of debt.

Source: nydailynews.com, "Mekhi Phifer files for bankruptcy, $1.3 million in debt: report", Chiderah Monde, May 8, 2014