Reality Tv Stars File For Bankruptcy

The women of the Real Housewives TV franchise may seem like they have it all

, but two of the stars of these hit shows have recently filed for bankruptcy. Teresa Giudice of the Real Housewives of New Jersey and Sonja Morgan of the Real Housewives of New York City have filed for Chapter 7 and 11 Bankruptcy respectively.

Over the years there have been numerous celebrities that have filed for bankruptcy. Why then, is so much made about these two "celebrities" doing it? The reason is because of the nature of their celebrity status. Anyone who has ever seen an episode of any of the Real Housewives series knows that these people spend more money on a random shopping trip than some people make in three months. Somethign people might be wondering because of this is if the protection these women are filing for is the same as an average Chapter 7 or 13.

When you consider this there are important thigns to note about these two bankruptcy cases. Teresa Giudice is said to have filed for a Chapter 7 bankruptcy. Given her on-screen spending habits this may not seem reasonable. However since all the facts of her particular case are known it is difficult to make that judgment. She is reportedly currently facing a bankruptcy fraud lawsuit, along with her husband.

Sonja Morgan, on the other hand, filed a Chapter 11. Chapter 11 bankruptcies usually are not filed by individuals but rather by corporations seeking protection from creditors while they remain intact. There are exceptions, such as an individual can file for Chapter 11 when their debts exceed the limits of being eligible to file for Chapter 13. Some people are surprised to hear this, but yes, your debts can exceed the limit to qualify. According to the Wall Street Journal, Morgan reported $19.8 million in debt and cites her production company's failed movie venture as the main reason.

Although it is not common for an individual to file for Chapter 11, it is rather common for a failed business venture to be the primary reason for filing bankruptcy. You may remember that after one of his ventures flopped Donald Trump filed for bankruptcy.

What many people do not realize is that filing bankruptcy is actually a lot more common than most think. Recent economic trends have forced a lot of people to take an honest look at their financial situations and make a decision. The best decision you can make, whatever it may be, is teh one that protects you and your family from debt.

by: Jim Brown

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