California residents are accustomed to hearing quite a bit of celebrity news in their daily lives. This is no surprise since many famous actors and musicians call California home. While there are sometimes good, heartwarming stories about celebrities helping charities to raise money or adopting children from poverty-stricken foreign countries, more often than not celebrities make news for the wrong reasons. While one actress caught some negative news coverage recently, fortunately it was not for an arrest or entering drug rehab. Teri Polo, one of the stars of the "Meet the Parents" movies, filed for personal bankruptcy.
Filing for bankruptcy is nothing new for celebrities who, believe it or not, actually do have to cope with some of the same financial issues that the rest of us deal with every day. For Polo, it appears that the main problem is something that everyone has hopefully put behind them by this time of year: taxes. The reports indicate that Polo listed $750,000 in unpaid taxes in her liabilities as part of her bankruptcy filing. She also owes approximately $30,000 in credit card debt.
According to the reports, Polo listed only $50,000 in assets. But, the most interesting aspect of Polo's bankruptcy filing is that she opted for a Chapter 11 filing instead of a Chapter 7 filing. As our readers may know from seeing previous posts here, Chapter 11 bankruptcy is usually reserved for business bankruptcy filings. Chapter 7 bankruptcy and Chapter 13 bankruptcy are the most common forms of personal bankruptcy filings.
It appears that through the decision to file for Chapter 11 bankruptcy Polo will attempt to reorganize her financial commitments. The reports indicate that she will attend credit counseling as part of the bankruptcy process.
Source: Yahoo! Celebrity, "What the Fock? 'Meet the Parents' Star Teri Polo Files for Bankruptcy," Jeremy Blacklow, April 22, 2014