People in New Hampshire may be interested to learn that David Cassidy, of “Partridge Family” fame, recently filed a petition for bankruptcy. His filing under Chapter 11 will allow him to reorganize his finances as well as his life, according to a statement he released.
According to documents filed with the petition, Mr. Cassidy has assets of up to $10 million, with total liabilities in the same range. He filed the bankruptcy petition on Feb. 11 in Florida after completing drug rehab. He is also currently going through a divorce from his wife of 23 years.
Mr. Cassidy’s debts reportedly include $39,000 in credit card debt, $131,000 in attorneys’ fees, a personal credit line of $292,598 and large debts in numerous medical, maintenance and accounting bills. Additionally, he is also currently involved in a legal dispute regarding thoroughbred horses of which he is the co-owner.
Chapter 11 bankruptcy is a chapter that is normally applicable to companies who need to reorganize and restructure their financial obligations while keeping the business open. The chapter may also be utilized by individuals in order to file for bankruptcy if they do not meet the means test required under Chapter 7 or the debt limits for filing for a Chapter 13 bankruptcy. In Mr. Cassidy’s case, it appears his debts far exceed the amounts allowed under Chapter 13, and his assets and income are too high for Chapter 7, leaving Chapter 11 as his option. People who have significantly high levels of unsecured and secured debt may want to talk to their bankruptcy attorney about possibly filing for bankruptcy under Chapter 11 if their debt exceeds the limits imposed for Chapter 13.
Source: Los Angeles Times, “Partridge Family’s’ David Cassidy files for bankruptcy after divorce, rehab”, Nardine Saad, Feb. 12, 2015