In today's economy, individuals and businesses are equally challenged financially. For some, one of the ways to find relief from relentless creditors is under the protection of bankruptcy. New York residents haven't been immune to the country's economic downturn. Even famed celebrities have found it difficult to hide from their financial trouble.

Celebrities are often living proof that it does not matter how much money you make, because unless you manage your finances wisely, you will find yourself buried under insurmountable debt. This is where we have found famed actor Gary Busey, who recently filed for the Chapter 7 bankruptcy protection from his creditors. In recent documents filed into bankruptcy court, the star of the hit movie "Lethal Weapon" revealed that he owes a lot more money than he actually has. Busey listed $50,000 or less in total assets while his liabilities totaled $500,000 to $1 million.

Some of Busey's creditors include lawyers, Wells Fargo Bank, a medical center and even some to the IRS. Busey also listed as a potential creditor a woman that recently filed a lawsuit against him. In the suit, she claimed the star tackled her at an airport.

According to Busey's manager, through recent press release, the actor has spent the last several years working to remedy his financial woes. He also attributed to the actor's poor financial standing to a combination of poor choices and associations with the wrong people. Busey's manager also stated that just as the poor economy took its toll one many of the big companies in the United States -- such as American Airlines and General Motors -- it also levied serious damage to Busey.

The press release also stated that Busey is looking forward to having a fresh start with his significant other and his son.

Chapter 7, as utilized by Busey, is also known as liquidation. The filer is ordered to sell their assets and use the money to pay creditors. But, in reality, many filers do not lose any assets and Chapter 7 is effective in erasing insurmountable debt. Chapter 7 also ensures that creditors no longer attempt to contact the debtor, especially with threatening phone calls.

Source: Reuters, "Gary Busey bankruptcy shocker: Actor files for Chapter 7 protection," Tim Kenneally, Feb. 9, 2012