Gary Dourdan filed Chapter 11 bankruptcy.
You may think his would be a unique case, but, a little internet research shows similarities with many of my clients.
Bought too much house when times were good. $5,000 per month payments back in 2004 when he was riding high.
Then, his income went down. His mortgage company did not work with him. No surprise there.
There has never been a way to force a mortgage company to modify a mortgage. No leverage for the consumer.
His Wikipedia entry discloses other problems common to many who file bankruptcy.
It only make sense, drugs or alcohol cost money, make us less productive, interferes with our judgment, we spend more, make less, bingo-bango bankrupt.
It is not for me to diagnose a substance abuse problem online, but I see them all the time in my clients, or their spouse, or children, or grandchildren, whom they tried to bail out but ran out of money.
You do not have to have a substance abuse issue to file bankruptcy. Spending all that you make, and then having the rug pulled out from under you by a big loss of income will do it.
Though, Mr. Dourdan is still making over $14,000 per month, so, he is a lot better off that way than my clients.
And he did file a Chapter 11 bankruptcy case, because he owes more than the Chapter 13 bankruptcy debt limit, $1.8 million, and has too much income to be able to stay in a Chapter 7 bankruptcy case.
Lucky for us, our problems are not picked up by the media.
He anticipates his income going back up, and I hope it does.
Even in Chapter 11 bankruptcy, he will not be able to modify the mortgage on his home.