Some people believe that filing for bankruptcy is a sign of weakness and incompetence, but this situation can happen to anyone. It doesn’t matter how much money you earn, bad financial decisions can drain your finances quickly and ruthlessly.
Here’s a handy article about Chapter 7 bankruptcy https://www.thebklawyers.com/file-chapter-7-bankruptcy-oceanside/.
Even famous people who earned what feels like astronomical sums of money aren’t immune to this problem. Here are some celebrities who have lost all of their assets and filed for bankruptcy.
Early 90’s music aficionados know who MC Hammer is well, but even the most oblivious person knows the famous ‘Can’t Touch This’ by this author. That album was released in 1990, and it grossed its author over $33 million that year alone.
However, that money wasn’t to last. Only a couple years later, MC Hammer filed for bankruptcy with over $10 million of debt. Reportedly, it wasn’t frivolous spending that brought him there, but rather employing numerous people in his community.
Francis Ford Coppola
The critically acclaimed director of the Godfather, Apocalypse Now, and many other great films wasn’t as fortunate nor as visionary when it came to finances. He filed for bankruptcy in 1992, after one of his films failed and his production company fell in debt. Even though he had considerable assets, in excess of $50 million, his debts were far higher.
In the more recent years, the timely director is doing fine, owning several businesses, including a winery and a restaurant, as well as several film and theater ventures as well.
The famous boxer earned an impressive total sum of around $400 million over his boxing career. Despite this mind-boggling sum, he filed for bankruptcy in 2004 with over $20 million of debt. He burned through his money through frivolous spending, bad investments and as a result of a divorce settlement.
Since the bankruptcy, however, the former boxer has done well. He appeared in several films, wrote his memoir and has a TV show called ‘Mike Tyson Mysteries’.
The famous rapper filed for Chapter 11 bankruptcy in 2015 after a court ordered him to pay a $5 million fine. 50 Cent was listed as one of the wealthiest rappers with the gross value of around $150 million. At one point, he owned shares in the Vitamin Water before it was bought by Coca Cola, which brought him at least $100 million when it was sold.
Chapter 11 enabled the rapper to continue his business ventures, rather than liquidating his assets like Chapter 7 would have. With Chapter 11 only the rapper’s finances are closely monitored and controlled, whereas he is free to continue to pursue his career.
All of these previous stories were those of starts falling hard. However, Larry King has a different tale. He filed for bankruptcy in the 1970s, when he was a radio host in Miami. After some disputes and false accusations of embezzlement and theft, King was out of a job and his debts started piling, so he filed for bankruptcy.
Soon after, he was offered a job by the CNN, a job which made him a star and which went on for full 25 years before he retired in 2010. He has had no financial problems since, seeing how the CNN job brought him his current fortune of around $150 million.
Regardless of the amount of money you have, the law is the same for all of us. If you need a break from all the creditors and debts, consider filing for bankruptcy. Contact a bankruptcy lawyer to find out which chapter suits you best and whether bankruptcy is your best option.
To contact The Bankruptcy Lawyers Chang & Diamond, APC
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