Wisconsin fans of the famous country music singer Eddie Montgomery, part of the award winning country band Montgomery Gentry, may have heard that he filed for bankruptcy protection on Tuesday, Jan. 7 in the U.S. Bankruptcy Court in Lexington, Kentucky. In his filing, Mr. Montgomery listed $1.9 million in assets and $13.4 million in liabilities.

The majority of these debts involve a failed restaurant venture in Harrodsburg, known as Eddie Montgomery’s Steakhouse, which was suddenly shuttered in May of last year and is now expected to be sold on Jan. 10. This sale was announced in order to pay approximately $12.7 million in defaulted debts to Central Bank & Trust of Lexington, Montgomery’s primary creditor. The restaurant was opened in 2009 by Montgomery and his then-wife, Tracy Nunan.

In addition to the failed restaurant, a house built on 273 acres in Boyle County, also owned jointly by Montgomery and Nunan, is currently on the market by Justice Real Estate for $1.25 million. Creditors are expected to receive roughly $1.16 million from the couple’s interest in that home.

For those people with overwhelming debt and seemingly insurmountable financial challenges, filing for Chapter 7 bankruptcy may be a fresh financial start. Chapter 7 for individuals or businesses offers comprehensive debt relief by stopping creditor harassment and wage garnishment for those struggling with debt. Bankruptcy may be a viable option for debtors large and small who no longer possess the means or potential to pay off their liabilities. However, the complex bankruptcy laws and procedures usually necessitate the guidance of a bankruptcy attorney who may assist struggling debtors with effectively maneuvering their way to financial freedom.

Source: Kentucky.com, “Country singer Eddie Montgomery files for bankruptcy“, Janet Patton, January 02, 2014