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Custody fight leads to bankruptcy filing

There are many reasons why individuals and families throughout the country end up in tough financial situations. The economic downturn of recent years has left many people who were formerly on solid financial ground with a whole litany of concerns, and those who weren't fortunate enough to be in a good position to begin with went through even tougher times. Whether it is because of an unexpected medical condition or reliance on credit cards, for some the ultimate result to their financial distress is to file for bankruptcy.

According to recent reports, that is the path that former "Gossip Girls" star Kelly Rutherford has had to pursue. But for Rutherford, the problem was not credit cards or medical expenses - it was a fight for child custody.

Rutherford had previously indicated that she had paid a small fortune in an all-out effort to regain custody of her children from a now-dissolved marriage with a German businessman. Her two young children, a 6-year-old girl and a 4-year-old girl, have been living with their father in Monaco. It appears that he is well-suited to put up a with a custody fight from a financial standpoint. However, due to the expenses Rutherford has incurred in legal fees, she reportedly filed for Chapter 7 bankruptcy recently.

There are many different types of debts that can be discharged through a Chapter 7 proceeding. For many this process can lead to a fresh start from a financial perspective, and perhaps Rutherford will enjoy such a new turn. However, it appears that her efforts to secure custody of her children may have been in vain. Once the Chapter 7 process is complete though, she will probably have a bit less to worry about.

Source: Daily News, "Kelly Rutherford files for bankruptcy after costly divorce, custody battle," Zayda Rivera, June 24, 2013