5 Celebrities Who Filed for Bankruptcy

When you?re struggling to stay on top of your finances it can be all too easy to feel like you?re alone. In reality a huge range of people from a vast variety of different walks of life end up running into money problems, even the rich and famous. Here?s a look at five celebrities who ended up filing for bankruptcy;

MC Hammer

The parachute-panted entertainer is probably best know for his hit single ?U Can?t Touch This?, an enduring party favourite that made the star so popular that by the end of 1990 he had reportedly amassed a personal fortune of $33 million dollars.

Whilst this would be enough to see most of us set for life, whether you?re rich or poor, the same rules apply, if you don?t live within your means, extensive though they may be, you?ll go broke. Thanks to his lavish spending habits, including the maintenance of a huge entourage at a cost of half a million dollars a month, by 1996 hammer was forced to file for bankruptcy.

Walt Disney

Not all celebrity bankruptcy stories all tales of reckless spending and devil-may-care frivolity. Walt Disney is a great case in point. Before he was a household name, he ran a venture called Laugh-O-Gram Studios, producing animated films for local picture houses. After his main backer went bust the business was dragged under. However, Walt still had enough for a bus ticket, so he took himself to Hollywood and gave things a second go. The rest, as they say, is history.

Anna Nicole Smith

Don?t count your chickens before they?re hatched. For most of us, this dictum might mean holding off on booking that holiday until our pay rise has been signed off on. For Smith the scenario was slightly different.

She?d been married to oil tycoon J.Howard Marshall for a year before he died and was probably expecting to be bequeathed a sizeable sum of money, after all, his estate was worth $1.6 billlion. In the event, he left her nothing. With personal debts as well as payments owed following an unfavourable judgement in a sexual harassment case, she had no option but to become bankrupt.

Donald Trump

Though he hasn?t personally filed for bankruptcy, even Donald Trump, with all his financial savvy and business acumen, has seen more than one of his projects end in bankruptcy.

His Taj Mahal Casino filed for bankruptcy. Next was the Trump Plaza Hotel, then his company Trump Hotels and Casino Resorts. The latter was renamed Trump Entertainment Resorts and that too went on to become bankrupt. Fortunately for Donald, bankruptcy in the world of big business is nowhere near as devastating as it is for the average individual. Indeed, he prefers to think of it as a method of ?debt restructuring?.

Mike Tyson

Money brings with it all sorts of opportunities. However, sometimes these opportunities entail risks. If you have the money to invest in a mortgage on a mansion, you have to be aware that, if for some reason your circumstances change, you?re going to be loaded with a whole pile of debt.

?When you?re being paid $30 million dollars a fight, as Tyson was at his peak, you can afford to rack up debts, but when your earning power starts to wane you may find your creditors unsympathetic. In 2003 the ex-champion filed for bankruptcy, owing more than $27 million dollars to various bodies, including law firms, tax authorities, trainers, jewellers and ex-partners. Curt writes on a wide range of insolvency issues, from methods of liquidating assets to deciding whether an IVA or bankruptcy is the best way forward.

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Source: http://www.howimportantisyourfinance.com/2012/11/02/5-celebrities-who-filed-for-bankruptcy/

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