Law Office of Allan E. Dunaway, PLC

Custody battle for TV star could result in her bankruptcy

Many Louisville residents who like the show "Gossip Girl" will know the actress Kelly Rutherford, who played a wealthy socialite on the show. However, Rutherford's life on TV does not mirror her actual life, as she has been engaged in a long custody battle for her kids after she and her husband were divorced. Her husband now lives in France with her kids.

The custody battle has drained most of her finances, and Rutherford says the situation has left her on the brink of bankruptcy. The divorce case itself is a difficult one, as Rutherford's ex-husband is originally from Germany and moved to France with the kids after he was granted custody. Many analysts of the case think it was a poor decision, and Rutherford has been dealing with many appeals and travel plans to try to secure custody.

As heartbreaking as this is for Rutherford and no matter how unfair her situation may seem, she is in the situation that she is in. That may sound cold -- but all we are saying is that her financial situation must be handled appropriately now, no matter how bad things get.

It is unclear if Rutherford is considering a Chapter 7 filing or a Chapter 13 filing; or if she will make any filing at all. But if she does file for bankruptcy, either filing could benefit her situation. Chapter 13 filings can benefit those with a great number of assets, especially a home (which, if it is under threat of foreclosure, a Chapter 13 filing could save it); and a Chapter 7 filing could help discharge some of the debts Rutherford is dealing with.

Source: Business Insider, "'Gossip Girl' Star Kelly Rutherford On The Brink Of Bankruptcy After Bitter Custody Fight," Aly Weisman, April 30, 2013

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