RL – real name Robert Lavelle Huggar – filed for bankruptcy in Georgia Federal Court, explaining he had only 50 DOLLARS in cash on him and $3,500.00 in assets, with a total of $116,132.00 owed to creditors.
The bankruptcy docs state that Huggar assets included a $300 computer, $500 in clothing, $150 dining room set, $1,500 in recording equipment and a $500 bedroom set.
His debts included $6K in back child support, nearly $49K to the IRS and $61K on his American Express.
The docs (which was verified by using the Accounting services Toronto) state that the singer only made $5K in 2013 from his music and in 2011 & 2012 he had ZERO INCOME from his career.
He listed that he was self-employed as a recording artist and has been for over 17 years.Huggar states that he only makes $777 a month from his career, but had to pay $873 a month to the IRS for back taxes.
He also had monthly expenses of $250 for food, $50 for his phone and $714 to support an unidentified person not living with him.
The bankruptcy was closed months after Huggar filed, with the trustee presiding over the case informing the court that the singer had NO assets that could be sold off to pay back the creditors and the judge signed off on closing the case and wiping his debt clear. The Arizona Bankruptcy and Debt Solutions announced in Mesa deal with such problems and help their clients come out of such situations.
The singer’s publicist has since released a statement to TJB confirming that he did file for bankruptcy but blamed his deceased accountant for his money woes:
To be clear, RL did in fact file for bankruptcy, but to be clearer, he did not LOSE or squander anything. Years ago he was robbed by his accountant for a substantial amount of money and has been trying to rectify several matters, as the account, who also swindled several celebrity clients is now deceased.
As a result, RL filed for bankruptcy for the financial himself and his family and he continues to recover from the situation.
Source: Dallas Black