David Adkins, the comedian known as Sinbad, filed for Chapter 13 bankruptcy in May, claiming $11 million in debt, the vast majority of which is tax debt. According to documents cited by AccountingWEB, the 56-year-old performer owes over $8 million to the IRS and another $2.3 million to California taxing authorities. He also reportedly owes $32,000 to Bank of America and some $375,000 to American Express.
In order to get a discharge in bankruptcy, sufficient time must pass between the filing of two separate bankruptcy cases. So if a bankruptcy case is filed too soon, a discharge may not take place. While there is nothing to stop a debtor from filing bankruptcy too soon, it would be a waste of time and money to do so.
As you may have heard, legendary singer Dionne Warwick filed for Chapter 7 bankruptcy in March, claiming only about $25,000 in assets but owing more than $10 million in California and IRS tax debt. According to reports, nearly $7 million of that tax debt is owed to the IRS, and the performer's lawyer says that mismanagement by Warwick's former business manager is largely to blame for that.