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Actress's custody battle leads to bankruptcy

One of the stars of the now off-air Gossip Girl is struggling through a child custody battle with her ex-husband even as she goes through the bankruptcy process. In fact, the custody battle is what Ms. Kelly Rutherford says led to her bankruptcy to begin with, as she had to spend her earnings from the show and her savings and investments to continue to seek custody of her children who were allowed by a judge to move to a different country with their father after his U.S. citizenship was revoked. 

Between the travel and the costs associated with seek custody, Rutherford says she can no longer meet her financial obgliations. 

This case is an example of the complex factors that can lead to bankruptcy and shows that it is not always poor financial management, but often bad luck or a difficult situation that can lead to overwhelming debt.

For many, divorce and custody battles can become expensive and can drain savings and resources. If that happens when it is difficult to find work, financial difficulties may ensue.

In this case, Rutherford has had to start representing herself in basic child custody proceedings because she is unable to continue to shoulder legal fees for basic matters. 

Luckily the bankruptcy process helps people restructure debt and looks at their assets and income to create a payment plan that will actually be feasible. Some debts may also be reduced or discharged depending on the specifics of each case and whether someone chooses to file for Chapter 7 or Chapter 13 personal bankruptcy


Source: New York Daily News, "Kelly Rutherford acting as her own lawyer in custody battle with ex-husband Daniel Giersch," MARIANNE GARVEY, BRIAN NIEMIETZ AND LACHLAN CARTWRIGHT, Aug. 29, 2013. 

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