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It is a combination of fact and fiction. It seems that there were situations that were perhaps dramatized a bit for the screen, to help move the story along, and also situations that were true. By the age of 12, she became rebellious and experimented with sex, drugs, and alcohol.
By 14 (post-film), she became emancipated and moved out of her mothers house to live on her own. Since then, she has recovered and had a successful career in Hollywood.
However, Nikki Reed has stated in interviews since then that this information is false. According to her, the marketing scheme was that it was autobiographical, but in fact it was not. She was influenced by her management to say it was based on fact, but she has never taken drugs and she didn't drink or have sex at that age. She does admit to being "nasty" to her mother and self-harming, so it was loosely based on her life, with major differences. Edit