It appears that Lou Pearlman, the former manager of the famous boy bands 'N Sync and Backstreet Boys, is close to finalizing his bankruptcy with numerous parties after a stint in prison for a separate case. Pearlman filed for bankruptcy six years ago, and it appears that on July 17, his lawyer and the bankruptcy courts will clear a repayment plan that will let get Pearlman out of debt.
It is not clear what type of bankruptcy Pearlman filed for, but the type of debt restructuring that is going on in this case is similar to what Chapter 13 filers go through. A Chapter 13 filing offers the in-debt party quite a bit. Not only can certain debts be discharged, but it can protect significant assets that you have -- such as your home from foreclosure.