Stephen Baldwin files chapter 11

Another celebrity has filed for bankruptcy protection.  Stephen Baldwin and his wife Kennya Baldwin filed for Chapter 11 bankruptcy protection in New York a month ago.

What is a Chapter 11 bankruptcy?   This filing is analogous to the chapter 13 filing that many Americans file.  The reason for Mr. Baldwin filing a chapter 11 is because his debt limits, both secured and unsecured, exceed those allowed in the Chapter 13 arena.  Also, Mr. Baldwin apparently has an income that would prevent the ability for him and his wife to seek relief under a Chapter 7.

The result?  We will wait and see but a Chapter 13 will require Mr. Baldwin tom pay his disposable income to his unsecured creditors for a particular commitment period.

Mr. Baldwin’s name has been in the news quite a bit lately.  First, participating in yet another reality TV show, Mr. Baldwin quit the show “I’m a Celebrity, Get Me Out of Here”.  This show had him staying in a jungle.  The reason provided was case of extreme bug bites.  The Baldwin couple also had a homeless man staying with them who was arrested for possession of heroin.  In June, the Baldwin’s home was listed for foreclosure.

According to the Baldwin’s petition, they have assets worth a value of $1.1 million and liabilities exceeding $2.3 million.  Included in the Baldwin’s debt is over one million dollars in federal and state taxes.