On November 26, 2012 Gary Busey finally got his bankruptcy discharge from the court. Back in February, the lethal weapon star announced he was filing for bankruptcy claiming he owed more than $500,000 to creditors. On February 11 the news broke, Gary Busey announces he is filing Chapter 7 bankruptcy in a Los Angeles US Bankruptcy Court. Over the last year he had to take a pre-bankruptcy credit counseling course and a post-Bankruptcy financial management course. It was reported that the court was waiting on the completion of the financial management course to award the bankruptcy discharge.
When filing Chapter 7 bankruptcy an individual is allowed to keep any property that is deemed exempt by bankruptcy exemption laws. In Gary Busey’s case, the property that was protected and he was allowed to keep was valued at $26,000.
Even though the movie star now has his debt behind him, it has been reported that he is still in severe financial trouble following the Internal Revenue Service $451,297 in back taxes. It’s apparent that these back taxes were not dischargeable in the bankruptcy filing. Most people don’t realize it but filing bankruptcy will eliminate some back taxes but there are restrictions. First of all, the individual filing for bankruptcy must be current in their tax filings. If the person is current, the taxes must be older than three years to be included in the bankruptcy filing. If they meet these guidelines they should be dischargeable. This is something the bankruptcy attorney would be able to discuss with their client.
In a statement, Gary Busey who is now 68 years old, doesn’t appear to be too worried about the mountainous tax debt. He told TMZ, “When you have too much, it’s a good thing to let it go. My new hobby is just breaking even.”