Many in Louisiana may think that people with a lot of money are immune to debt struggles. Yet with large amounts of money also often comes significant spending along with the potential of those assets being mismanaged. Another financial responsibility that those termed as being rich may have is a heavy tax liability. All of these factors add up to the possibility of even wealthy people having to face the prospect of bankruptcy.
A once prominent criminal defense attorney is having to face it for the second time in as many years after he recently filed for Chapter 13 bankruptcy in a Maine court. This comes after he filed for Chapter 7 bankruptcy last year. His financial troubles stem from his handling of a client’s assets in the mid-1990’s. As part of a deal with prosecutors, he assumed control of his client’s shares in a pharmaceutical company, and later paid himself for his services from those shares. His actions ended up getting him disbarred and even jailed, as prosecutors argued that the proceeds from the shares, which were secured as part of a drug smuggling and money laundering operation, should have gone to the government.
The Internal Revenue Service also levied a heavy tax penalty on him as well, which prompted the filing of his Chapter 7 case. His most recent action is meant to repay those debts that were not discharged in that initial case.
Whatever the reason one may have for seeking bankruptcy protection, initiating such action and then fulfilling the obligations that come with it can be a complex process. Such a process might be easier to manage with the assistance of a qualified attorney.
Source: Bangor Daily News “O.J. defense attorney F. Lee Bailey again files for bankruptcy in Maine” Fishell, Darren, June 27, 2017
