for you Right now, Annie Leibovitz would probably tell anyone that when it rains, it pours.  She joined Vanity Fair in 1983 and quickly became an icon of pop culture with famous photographs of John Lennon, Queen Elizabeth II, and a plethora of other celebrities.  Despite her hefty earnings over the last couple of decades, she began experiencing financial stress as early as 2003 when a neighbor of one her properties sued her for $15 million.  She eventually had to purchase his property for $1.9 million.  Since 2003, the debts have been piling up her, including federal and state tax obligations.  She took the route that many attempt and sought to consolidate her loan obligations with Capital Group in 2008.  Despite the consolidation, her debt stress continued.  She is now being sued by Capital Group on that account.  As a result, she is at risk of loosing her life’s work, the portfolio of famous images.  Her portfolio is estimated to be worth around $40 million.   Fortunately, other options could develop that would allow her to save her work.  Talks of bankruptcy are floating.  Right now, her creditors are driving the collection activities.  A filing of bankruptcy would give her automatic stay protection until she could get her finances organized.  It would also give her more control over how to resolve her debt to Capital Group.  She would have the ability to choose which resources to use to settle the debt, instead of Capital Group trying to take control of selective assets, like her portfolio.

Most of us don’t have $40 million worth of spare assets to settle accounts, but we can still identify with Leibovitz’s financial crisis.  Most of us do have some type portfolio that represents what we have spent our life working for:  your home, your car, or your computer equipment.  We hope for the best and work diligently to take care of our finances, at least until something happens.  It’s a little different for everyone and the reasons vary.  But many people will try to do what Leibovitz’s did and consolidate because they do want to live-up to their obligations.  Consolidation can work under the right set of circumstances.  However, for many that have an ongoing set of financial stress factors, consolidation does little more than prolong the agony of a bad financial picture.  It can also have an aggravating affect of increasing the costs of your debt with more financing and loan fees.  So the hole you thought you were getting out of, just got deeper instead.  When you have a prolonged financial crisis, bankruptcy may be the best option.  It puts you back in control of your financial decision making.  It also balances out the playing field.  For example, Capital Group is driving the collection game right now and is looking to take the life’s work of an artist.  A bankruptcy filing will give Leibovitz more control and say-so in the collection process, rather than just having to succumb to a collection suit.  The same options and protections are available to you through the bankruptcy process.  Contact a qualified bankruptcy attorney today to get a snapshot of the best choices