Aaron Carter Reveals $150K Debt; Former Child Pop Star Struggling with Finances, Bankruptcy
May 12, 2016 12:23 PM EDT
Aaron Charles Carter, known professionally as Aaron Carter, revealed that he is currently $150,000 in debt. He went on the U.S. reality television show 'Life of Debt' to confess his struggles with finances and that he previously filed for a Chapter 7 bankruptcy in 2013.
According to US Weekly, Carter opened up about his financial problems on a preview for Spike series reality show 'Life or Debt'. He revealed, "Financially, I'm in a terrible position... When I turned 18, I got hit with all those taxes. I filed a Chapter 7 bankruptcy last year; now I'm already over $100,000 in debt." It was reported that the former child pop star owed $1 million in taxes back in 2009.
Carter shared that he currently has no savings to his name since he signed over his earnings to his parents Robert and Jane carter, according to Mirror. He said, "It's been really difficult for me. I want to have a life set up. I want to have a house. I can't tell you how badly I want to have a home."
Legal documents stated that his assets totaled only a mere $8,000 while his liabilities totaled around $2 million - including $1.3 million in unpaid taxes - at the time he filed for Chapter 7 bankruptcy in 2013.
A representative for Carter explained, "The bulk of the debt is from over 10 years ago when he was a minor and his money was being managed by other people... Most of that is an IRS tax debt. It's very old debt from when his money wasn't in his control. This is not recent problems that happened in the last couple of years, it's going way back."
According to the NY Daily News, the 28-year old younger brother of Backstreet Boys member Nick Carter revealed that he is currently $150,000 in debt. Carter revealed during an interview on Oprah Winfrey's show in February that his parents contributed to his current financial woes. He said, "There was a lot of neglect on my parents' part... They didn't do a lot of things right."
Robert and Jane Carter served as Aaron Carter's managers until he was 18 years of age. Carter explained that he signed over his millions to his parents to prevent them from going to prison for tax evasion. 'Life or Debt' host Victor Antonio shared that his parents were required by law to put the 15 percent of the pop star's earnings into a trust fund while he was still underage.
Aaron Carter burst into the music industry at a young age in the late 1990s and established himself as a pop and hip hop artist in the early 2000s with hits such as 'Crazy Little Party Girl', 'Crush On You' and 'I Want Candy'. He released his first self-titled studio album in 1997 and went on to release three more in 2000, 2001 and 2002.