Aaron Carter Bankrupt! Nick Carter Younger Brother Files For Chapter 7 Bankruptcy With Over $2 Million Debt – ‘I’ve Been Living A Different Lifestyle,’ Says Carter

Aaron Carter is bankrupt with over $2 million debt, according to a report published by CNN. The former teen sensation debts were mostly from taxes he owed back when he was making lots of money. He already filed for Chapter 7 bankruptcy to petition his debts.

"This is not a negative thing," Steve Honig, Carter's publicist told CNN. "It's actually very positive. It's him doing what he needs to do to move forward."

The singer now 25 year old owed the Internal Revenue Service with $1.3 million in back taxes from his income way back in 2003, Carter was just 16 by that time.

"The bulk of the debt is from over 10 years ago when he was a minor and not in control of his finances," Honig explained to CNN. "This has happened to a lot of people who had fame at such at a very early age."

Currently Aaron Carter is left with only a handful of what he earned from his early success, according to his Chapter 7 bankruptcy petition.

When he signed the petition last month, he only had $60 cash inside his wallet and just $917 in his checking account. His bank savings account is left with only $5.

With only having a 61-inch flat screen TV and his cell phone valued at just $500 for his personal property, looks like Aaron Carter is really needs to work fast in reviving his career.

He still does own some valuable items like his $3,750 Breitling watch, clothing, two laptops, a guitar and a Louis Vuitton backpack all valued at just $8,200.

Although Carter owns the publishing rights to the songs "Saturday Night" and "One Better," he doesn't get any royalties from them currently, according to the bankruptcy petition.

According to Honig though, Aaron Carter is "in the right direction" and "really working his ass off."

He performed in more than 400 acts in the off-Broadway cast of "The Fantasticks" last year.

He is now on a 75-city tour of the U.S., but he only earns a sum of $2,000 a month from the tour.

Aaron Carter was known to have had problems with substance abuse back when he was younger, but according to Honig he has been "completely clean of quite some time."

Carter is "really gotten his act together and is really doing well," added by his publicist.

"I've been living a different lifestyle," Carter admits to the Wichita Eagle last month. "I don't party. I've partied enough. I don't go out. I focus on other things that are much more important. I focus on being an entertainer. I love performing. That's what I'm about. I want to take that next step."