Business expenses, not excessive spending, led to comedian’s debt

In many jobs, people earn a steady paycheck and generally know how much they expect to earn in the coming weeks, months or even years. However, in a fluctuating economy and with so many people changing jobs or starting new businesses, there are many people who do not have the luxury of knowing exactly what their paycheck will be.

This sense of instability and insecurity can be very difficult for people to cope with. In some cases, years of success and wealth can be followed by extended periods of living paycheck-to-paycheck or without an income. With all the uncertainty created by this dynamic, it may not be difficult for people in New Jersey to run into financial problems and excessive debt levels. This was reportedly the case for comedian Sinbad, who recently filed for bankruptcy for the second time.

The well-known comedian says that despite earning $16,000 a month and having $131,000 in assets, his debts ballooned to $11 million and became unmanageable. But unlike others in the entertainment industry, Sinbad maintains that his debt was not caused by excessive spending and sporadic investments. Instead, he says that he had trouble balancing his finances because of the costs of running his business.

Sinbad says that he leads a modest life but the debts acquired from personally bankrolling his business ventures. Like others in similar positions, the comedian felt that he would just get a role or a job and be able to pay the debts off right away. But finding a lucrative job proved to be very difficult and the fees and fines for missed payments doubled the amount of debt, which then multiplied. Soon, he found himself $11 million in debt and decided to file for bankruptcy.

People are not working for decades at the same job and the same company in the way that we used to. There are also changes in various industries that happen quickly over which we have no control. We are starting our own businesses, seeking out new opportunities and trying to find jobs that satisfy us and make us happy. Unfortunately, this does not always come with a stable income. Because of this, many people who are generally financially responsible and are not excessive spenders may find themselves in need of some help from a bankruptcy attorney.

Source: The Huffington Post, “Sinbad On Going Bankrupt: I Thought I Could Get Another Movie And Pay Up, ‘But That Movie Never Came’,” Aug. 22, 2013

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Attorney Joel R. Spivack is an experienced bankruptcy and residential real estate transactions lawyer in Cherry Hill, New Jersey. Clients come to us for legal services, but what we really provide is peace of mind. For more than 30 years, Attorney Spivack has helped people make wise, informed decisions about bankruptcy filings, debt relief options and residential real estate transactions.
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