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.
The Great Recession, or perhaps the federal sequester, has forced the U.S. Trustee Program to indefinitely suspend the audits it is required to perform on Chapter 7 and Chapter 13 personal bankruptcy cases. The audits are required by the 2005 bankruptcy reform law called the Bankruptcy Abuse Prevention and Consumer Protection Act, but apparently even bankruptcy trustees can't keep things going without money.
In January Casey Anthony, the woman who was charged and then acquitted of killing her 2-year-old child, filed for Chapter 7 bankruptcy. She owes some $500,000 in legal fees, along with other debts that bring her total liabilities to about $792,000. She claims $1,100 in assets.