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Dance Mom's Bankruptcy

Abbey Lee, the reality TV star of "Dance Moms," filed for bankruptcy several years ago. And the Dance Moms bankruptcy did not go well. Why? She didn't disclose all her assets when she filed for bankruptcy. That's bad!

Filing bankruptcy provides protection from creditors. It allows you to eliminate debt you cannot afford. And that's good. But you must follow the rules to receive the bankruptcy benefits. One of the most important rules is to disclose your assets when you file for bankruptcy. Dance Moms bankruptcy did not do this. She tried to hide nearly a million dollars in assets from the bankruptcy court, and then lied about it. Again, this is bad.

Dance Moms bankruptcy is a cautionary tale. Her plight is now in the hands of the bankruptcy court. And she is going to jail. See for yourself. She's not the first. Nor will she be the last to suffer such fate.


As a former football player, I've often likened bankruptcy to the fair-catch. It's simple. Wave your hand in the air when you catch a kick and you can't be tackled. In exchange, you can't run. Filing bankruptcy is waving your hand in the air. Your creditors can't tackle you. But you cannot run from your legal obligations. Disclosing your debts is one obligation. So is disclosing your assets. Dance Moms bankruptcy did not do this. She may have disclosed her debts, but not her assets. She lied about it, too.

I have seen Dance Moms. My daughter was a fan. Not bad for reality television. When I saw a news teaser of her bankruptcy problems, I stayed tuned. She spoke of learning from the process. Learning from her mistakes. And, at 51, of growing up. Guess so. Prison sentences of a year and a day will do that. At the end of her ABC News interview, though, she cautioned against filing for bankruptcy. But the bankruptcy did not fail her. She did. Guess she tried to run! 

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