Joey Lawrence Bankruptcy Ends
Some actors from the 1990s show “Blossom” have gone on to fame and fortune. Mayim Bialik has struck gold on “Big Bang Theory.” Others like Joey Lawrence, not so much. Despite earning over $500,000 in 2015, he took home just $60,000 the next year. Joey didn’t cut back enough on spending, couldn’t keep up. In 2017 a Joey Lawrence bankruptcy was filed, claiming over $355,000 in debts.
With all that half-million-dollars income in 2015, Joey Lawrence still qualified for Chapter 7 bankruptcy. How can that be, you ask? Apparently he could barely cover his 2017 overhead, and passed the bankruptcy means test for Chapter 7. Now, in 2018, the Joey Lawrence bankruptcy has ended.
The Chapter 7 trustee was able to liquidate over $75,000 in assets for the benefit of Joey Lawrence’s creditors. Often, taxes are priority debts and get paid first, before the other, nonpriority unsecured debts. In the Joey Lawrence bankruptcy, the IRS didn’t even get half its debt. The same goes for the Franchise Tax Board.
Chapter 7 Can Be Tough
Chapter 7 involves losing stuff, and while Joey apparently didn’t have income to repay his debts, he had things the Chapter 7 trustee could take. So that’s what happened, and after almost a year, his case is now over and he can move on with his life.
People think that Chapter 7 is always better, and sometimes it is. But each situation is different and there are times someone is better off in another of the types of bankruptcies.
Finally, we’re often shocked when a famous celebrity we assume is rolling in cash falls on hard times. But acting is a profession just like being an engineer, sheriff deputy, or registered nurse. It’s human nature to spend what we earn. However, when the overtime is gone or next acting gig doesn’t come, not everyone adjusts their spending. The Joey Lawrence bankruptcy is a example that could be any one of us.