Most people file for bankruptcy to wipe out their debt and get a fresh start. Sometimes, however, the fresh start isn't so fresh.
Actor Gary Busey filed for Chapter 7 bankruptcy back in February, listing about $500,000 in debts. Last week the broke actor's bankruptcy case was completed, but he's still in the hole to the tune of about $450,000, TMZ reports.
Busey was a big name in the 80s and early 90s, starring in films like "Lethal Weapon" and "Point Break." At some point, however, the actor's stock began to fall, and in recent years he's appeared in straight-to-video flicks like "Piranha 3DD" and "Maneater."
Busey filed for Chapter 7 bankruptcy in February, claiming more than $500,000 and only $26,000 in assets. Some of the actor's creditors included Wells Fargo Bank, UCLA Medical Center, and a number of lawyers, according to TMZ. Busey also owed Carla Loeffler, a woman who sued Busey for allegedly attacking her at an Oklahoma airport in May.
Filing for Chapter 7 will usually allow a debtor to get rid of most his debts and start over with a clean slate. The debtor's property is liquidated and the proceeds paid to his creditors. In exchange, the debtor gets a discharge, extinguishing his debts.
Busey received his discharge Nov. 26, relieving him of about $57,303 of debts and liabilities. However, the majority of his debt survived the bankruptcy.
Some types of debts aren't discharged in bankruptcy. These include student loan debts, child support, alimony, and certain tax debts. That's why Busey is still on the hook for about $45,000 in state and federal taxes, according to TMZ.
Despite his money problems, Busey has been keeping his chin up. "When you have too much, it's a good feeling to let go," he told TMZ. "My new hobby is just breaking even."
- Gary Busey Files for Bankruptcy -- I'm Really REALLY Broke (TMZ)
- Exempt vs. Non-exempt Property Under Chapter 7 (FindLaw)
- Pros and Cons of Declaring Bankruptcy under Chapter 7 (FindLaw)
- Should Hostess Executives Get Bonuses? (FindLaw's Phoenix Bankruptcy Law Blog)