Jose Canseco Files for Chapter 7 Bankruptcy in Nevada
Former Oakland Athletics slugger Jose Canseco has filed for bankruptcy in Nevada. Seeking asset liquidation under Chapter 7 protection, Canseco’s petition lists less than $21,000 in assets and almost $1.7 million in liabilities, including more than $500,000 owed to the Internal Revenue Service (IRS). If you are experiencing serious debt, it may be time to contact a Reno Chapter 7 bankruptcy attorney.
The former 1988 American League Most Valuable Player has had well-documented financial struggles over the past several years. Canseco has written books, appeared on reality television shows and made public appearances in ill-fated attempts to save himself from financial failure.
Under a Chapter 7 filing, several debts can be eliminated. However, other debts, such as child support, alimony and property taxes from the past three years, cannot be discharged. Taxes may sometimes be discharged in bankruptcy, but filers must prove the debts are related to income taxes more than three years old, and that the debtor did not engage in any fraud. If Canseco cannot prove these elements, he may still owe the IRS $500,000, even if his private debts are eliminated.
Personal bankruptcy in Reno, NV is appropriate for those who have surmounting debts to private entities, such as credit card and hospital bills. To qualify for Chapter 7, your income must be below the state’s median income. As of May 1, 2012, in Nevada a single-income household cannot exceed $40,429 per year to receive Chapter 7 protection.
The Darby Law Practice, Ltd. is a bankruptcy law firm dedicated to assisting families and individuals through tough economic times. If you are considering filing for bankruptcy, contact the firm today.