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Comedian-actor Sinbad files for bankruptcy for third time

Our Lexington readers may have heard in the last couple weeks that Sinbad, the comedian who became popular in the '90s for his efforts at clean humor, has filed for bankruptcy. Sinbad, whose real name is David Adkins, filed for Chapter 7 bankruptcy last month claiming to owe $10,991,715 in debt and to possess only $131,000 in assets.

This will be the actor-comedian's second time filing for bankruptcy since 2009. In his recent filing, the 56-year-old's debts include $374,979 owed to American Express, $32,199 owed to Bank of America, $2.3 million owed to the CA Franchise Tax Board, and $8.3 million owed to the IRS for taxes from 1998-2006. Adkins has admitted owing state and federal taxes from 2009-2013. At present, Adkins reports, he earns only $16,000 per month and is unable to afford his bills. 

Adkins filed for bankruptcy once prior to his 2009 filing, though that case was dismissed because he failed to file the correct documents.

Media sources have been unclear as to whether Adkins filed for Chapter 13 or Chapter 7 bankruptcy. The difference between the two is significant. Each form of bankruptcy has unique filing requirements, and the way debt is handled is different. In Chapter 13 bankruptcy, the debtor and the bankruptcy court come up with a repayment plan for either three or five years, during which time payments are made to creditors under court supervision. After that period of time, debts are discharged--except those debts which cannot be discharged.

In Chapter 7 bankruptcy, the debtor's non-exempt assets are liquidated and the proceeds used to pay off creditors. After creditors are paid, the rest of the debt is discharged. 

Source: TMZ.com, "Sinbad: I'M BROKE...Again," May 20, 2013.