With Only $8,000 to His Name, Aaron Carter Declares Chapter 7 Bankruptcy

Posted in Financial News , Savings Account • November 22, 2013

Aaron Carter-resized2

Aaron Carter, former child pop star and the younger brother of Backstreet Boy Nick Carter, has filed for Chapter 7 bankruptcy, reporting tax and credit debts exceeding $3.5 million.

Aaron Carter Owes IRS More Than $1.3 Million in Income Taxes

Carter currently has just $8,232.16 in assets and only $977.16 in accessible cash, according to documents obtained by Yahoo omg!. In his court filing, dated Oct. 23, Carter stated that he owes $2,204,654 to creditors, which includes a $1,307,648 income tax debt to the IRS and a $31,166 American Express bill.

“Aaron filed for Chapter 7 bankruptcy protection to alleviate past issues in an effort to move forward with his life and career,” a representative for Carter told omg!. “The overwhelming majority of the debt he is asking to be discharged is from more than 10 years ago when he was a minor and not in control of his finances.”

Filing for Chapter 7 bankruptcy will require Carter to liquidate most of his assets and allows him to be absolved of all of the bills he owes creditors. However, filing for Chapter 7 bankruptcy will also stay on Carter’s credit report for 10 years.

Carter Claims Financial Problems Arose With Parents As Managers

In an interview with “Rover’s Morning Glory” radio show earlier this year, Carter explained that he made hundreds of millions of dollars during his career but that problems arose between himself and his parents, who were his managers, when he started asking about his finances.

“When I was 13-14, I started paying attention to what my mom and dad were doing [with my money], and I wanted to know about stuff,” Carter said on “Rover’s Morning Glory”. “I started getting familiar about taxes. … I was becoming very inquisitive and my parents didn’t like that.”

Eventually, Carter decided to cut business ties with his parents, and he is now disputing a debt to Live Nation Merchandise Inc. music company of $575,340, as well as an $89,000 bill from talent management company Wright Entertainment Group LLC.

Photo credit: Paparazzo Presents

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