Dionne Warwick Seeks IRS Relief Through Chapter 7 Filing
- April 13, 2013
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Singer Dionne Warwick’s affiliation with the Psychic Friends Network provided her with no known warning of her future bankruptcy or the need to cut back on her spending. Dionne Warwick filed a Chapter 7 bankruptcy petition in March 2013 stating her income and expenses to be equal at $21,000 per month and leaving her with nothing to pay outstanding debts. Dionne Warwick’s stated expenses may have been substantial but, based on her outstanding unpaid tax burden of approximately $10,000,000 they were not substantially deductible. Dionne Warwick owes $7,000,000 to the Internal Revenue Service which accumulated from 1991 to 1999. There is a potential dispute as to the portion of this debt attributable to penalties and interest. IRS debts are dischargeable in the event the debtor meets all of the following criteria: 1) the taxes are only income taxes; 2) the debtor properly filed all returns; 3) the debtor did not attempt to evade payment of the taxes; 4) the debt is at least 3 years old; and 5) the debt was assessed at least 240 days before the debtor files the bankruptcy petition or was not yet assessed. Representatives for Dionne Warwick say she filed all returns and paid the debt leaving only interest and penalties to make up the $10,000,000 outstanding debt. If this is true, because of the age of the delinquent taxes, Dionne Warwick will likely find herself free of this substantial debt she has carried since 1999. If you have been carrying the burden of IRS or other substantial debt, you can also obtain relief through bankruptcy. If you are considering bankruptcy you should consult with an experienced bankruptcy attorney immediately in order to protect your rights. For more information regarding foreclosure, bankruptcy or other consumer debt matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for information purposes only and in no way is intended to replace the advice of an attorney regarding your specific matter. Our law firm is a debt relief agency and helps people file for bankruptcy relief.