Bankruptcies in the News: Actor/Singer – David Cassidy

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David Cassidy – Partridge Family, 1970-1974

David Cassidy, probably best known from the 1970’s show The Partridge Family, filed for Chapter 11 bankruptcy this year.  According to court documents, he has around $4,000,000.00 in assets, and $2,000,000.00 in debts – one hundred thousand of which are past due legal fees to his Florida lawyer.

The choice to file under Chapter 11 was due in part to the amount of assets he still owns, and the value of the unsecured debts he owes. Most of the time, Chapter 11 is reserved for business bankruptcies.  See: Radio Shack, and the weapon manufacturer Colt.  For most individuals with high income or assets they wish to keep, the option is Chapter 13.  However, a Chapter 13 restructuring is generally not available if an individual has over a million in secured debt, and close to four hundred thousand in unsecured debt.  In these situations, Chapter 11 is the only other choice.  Some of the assets Cassidy claims include homes in New York, Florida, and the Bahamas.

In the final analysis, his case illustrates the fact that not everyone who files for, or needs, bankruptcy protection is financially destitute.  Getting a fresh start is something that is available to people in a wide variety of situations.

My “Bankruptcies in the News” blog is aimed at providing articles of interest regarding famous companies, or individuals, who have sought bankruptcy protection.  It should be noted that although bankruptcy filings are public record, the docket itself is not readily available through simple internet searches. It is maintained behind a “pay-wall” requiring a registered account, and payment for searches. Therefore, if you file for bankruptcy, it is unlikely anyone will be aware of this fact ~ unless you are a famous public figure.
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