Celebrity Bankruptcies
By Richard V. Waple
As a practicing bankruptcy attorney, I have consulted clients from all walks of life and seen first-hand that financial hardship does not discriminate. Individuals with different income levels, races, ages, nationalities, and backgrounds all may need a bankruptcy at some point in their life, even celebrities. Some of the numbers are staggering and today’s blog will highlight a few of the statistics from celebrity bankruptcy filings;
Mike Tyson:
Mike Tyson filed for bankruptcy, despite earning millions during his boxing career. Court records show that Iron Mike had about $27 million in debt, including debts owed to the IRS ($13.3 million); a limousine company ($308,749); a jeweler ($173,706); a law firm ($382,028) and a Ferrari dealership ($60,603) Tyson’s assets include two houses, multiple cars, and miscellaneous other personal property.
Toni Braxton:
Toni Braxton’s most interesting bankruptcy schedule is “Schedule J – Current Expenditures of Individual Debtors.” She lists monthly expenses of; Rent ($4700); Telephone ($4,800), Makeup & Beauty ($600), Clothing ($2,000) and Flowers ($1000) totaling $43,800 in total monthly expenses! Toni also lists assets including a Condominium Unit ($725,000); a Porsche Carrera Cabriolet ($45,000); and Musical Awards/Personal Effects ($20,200)
Burt Reynolds:
Burt Reynolds filed for bankruptcy in 1996, listing assets valued over $6,000,000, including his dog ($500.00) and Real Property ($6,045,000) and liabilities totaling over $12,000,000, including Edward Katz Hair Design ($121,796.62) and CBS Studio Center ($9,802.82).
Gary Coleman:
The former “Different Strokes” child star, and onetime owner of a multi-million dollar estate, filed for bankruptcy protection in 1999. His personal property had dwindled to less than $20,000 according to his bankruptcy schedules. Gary Coleman listed approximately $72,000 of liabilities and reported a salary generating $1499.33 in net monthly income.
There are many more celebrities who have filed for bankruptcy in the past, and not unlike the typical consumer, many of these celebrities have used their fresh start to get back on their feet and rebuild their careers and financial fortunes.
