Pamela Anderson has disputed rumors that she is considering bankruptcy. But should the former Baywatch star file bankruptcy given the multiple liens placed o her property? According to several reports, Pamela Anderson is facing liens from various construction companies for unpaid bills totaling nearly $1 million and a bill for $252,360 for unpaid California state taxes. But despite the reports, Anderson says that she is far from filing bankruptcy:
"That's all garbage. I have a beautiful home in Canada, nine little cabins on the dock that I'm building and a store in the front. That's going to be kind of my sanctuary. I think eventually I'll be out of L.A. and I'll be living more on Vancouver Island. And Malibu, I can't get away from Malibu... I'm all over the place."
Nine cabins?! Wow, that's a lot of real estate which could mean that Anderson has a lot more debt than she's admitting. If the reports are true that Pamela Anderson has failed to pay both her taxes and her builders, bankruptcy might be able to stop any lawsuits as long as there wasn't any fraud involved. For example, if Pamela Anderson filed her California state taxes with the intention of fraudulently deceiving the tax collectors, the bankruptcy court would not allow her to discharge those taxes and she might be charged criminally by the tax authorities. Also, if Pamela Anderson engaged the services of the construction companies but never intended to pay them, her debts to the company might not be discharged in bankruptcy. The bankruptcy court will not discharge debts that were incurred through fraud. On the other hand, if the debts were legally incurred she may be able to discharge or repay those debts via bankruptcy. For example, she could repay her California tax debts via Chapter 13 bankruptcy or Chapter 11 bankruptcy. Also, she may even be able to discharge part of the debts owed to the construction companies, depending on the circumstances of her bankruptcy case.