CSI Actor Files For Bankruptcy

A pending foreclosure, mounting credit card bebt... CSI Actor Gary Dourdan found himself in the headlines after he was sued over his credit card debt in 2010.

His financial troubles continued as Wells Fargo Bank wanted to place his California summer home up for auction this summer to help pay off his mortgage debts. In August 2012, Gary chose the path that so many other have turned to for a new financial start... bankruptcy.

In the court documents, obtained by TMZ, Dourdan claims he has just over $1.8 million in assets, but owes several creditors a total of $1.73 million, with the largest creditors being financial institutions.

Dourdan listed  a 2006 Dodge Charger worth $7,000, $4,000 in furniture, $1,500 in clothes, and $500 in watches as some of his posessions.

 

What does he make a month? Court documents state that he earns an average of $14,883 a month, but his bills leave him with just $321 in disposable income.

According to MSN's Wonderwall Dourdan, 45, "is predicting a more promising future and "anticipates major acting roles", which he hopes will help settle his debts".

The actor has not landed a significant film or TV job since his "CSI" analyst character Warrick Brown was killed off in the season nine premiere in 2008.

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Posted in Celebrity Bankruptcy , CSI Bankruptcy , Gary Dourdan , mortgage debt

Daughter Wins Gold, Mom Files Bankruptcy

It was 2 gold medals that made one U.S. gymnast a celebrity overnight. Gabby Douglas made international headlines upon capturing the second gold and the hearts of many. The American sweetheart, tumbled her way to the top of the podium twice during the 2012 Olympic Games, but the gymnast’s mother isn’t quite as fortunate.

Reports show Natalie Hawkins filed for Chapter 13 bankruptcy in January with nearly $80,000 in debt. According to the Associated Press, Hawkins said the bankruptcy was her story and she wasn’t embarrassed about it. “It shows that even though I didn’t like to have to do it,” she said. “I’m glad there was something there for me to be able to protect my home.”

According to WSJ - Hawkins’s latest bankruptcy wasn’t her only one; a previous Chapter 13 case was dismissed last year for failure to make payments in a bankruptcy plan. Hawkins isn't alone. Many Olympians' parents struggle, noting that it extremely expensive to support their children's dreams.

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Posted in Celebrity Bankruptcy , Chapter 13 bankruptcy , gabby douglas , olympic bankruptcy

Top Celebrity Bankruptcies

Found an awesome article from Howtosavemoney.com that details the top celebrities who filed bankruptcy... When people come into our office and say they are embarrased or we hear people who are financially struggling say, "I need help but i'm too good to file bankruptcy"... we tell them that we are here to help. There is help. We help people get a fresh start, one that has afforded millionaires the opportunity to find their success... innovators to make their mark on the world and ordinary people to find peace and get a fresh start. Check out this fun read... ___________________________________________________________
Willie Nelson

Willie Nelson is one of Country Music’s living legends with over 50 million records sold but even with all those gold records he was no stranger to debt. Well known as a big spender with a generous heart, and an entourage somewhat like MC Hammer’s Willie Nelson’s finances caught up to him in the late 90′s. In 1997, the government seized Nelson’s gold records, Texas ranch and bank accounts to pay off about $16.7 million in back taxes. In true American fashion however Willie Nelson did a Taco Bell spokesperson side job and released a new album in honor of the IRS, titled “The IRS Tapes: Who Will Buy My Memories?” to raise funds and settle his debts.

Marvin Gaye

The hit singer of “I heard it Through the Grapevine” filed for bankruptcy in the 70’s after paying the divorce settlement for his first wife of 14 years, Anna Gordy. He continued to struggle, having tax and drug problems, and moved to Europe to avoid the Internal Revenue Service. However bankruptcy never stopped Marvin Gaye from coming back and in the 1980′s released some of the most well-known songs in history including the Grammy winning “Sexual Healing”. In 1984 however Marvin Gaye’s life was cut short dying at the age 45. Three years later Marvin Gaye was induced into the Rock and Roll of Fame.

Mc Hammer

Who can forget the baggy pants and dance moves which would make most people keel over in 30 seconds. The 90′s were full of glitz and gold and few can forget the famous Hammertime song by M.C. Hammer. However along with outrageous parachute pants and dance moves M.C. Hammer’s rise to fame came with a crushing blow to his personal finances. Racking up some of the biggest musical hits at the time he also had an entourage (and payroll) to match. M.C. Hammer reportedly paid over $500,000 a month to a staff of 300 people and in 1996, had accumulated $13.7 million of debt with only $9.6 million in assets. He filed for bankruptcy with debts that included $500,000 in attorney fees, $110,000 to his decorator and $100,000 to the IRS.
Meatloaf

Meatloaf has sold over 70 million records with his “Bat out of Hell” album charted for over nine years, making it one of the biggest selling albums of all time and on the VH1 list of 100 Greatest Artists of Hard Rock. He fired his managers in 1981 after finding they were stealing money from him, and the managers retaliated by having Meatloaf’s assets frozen and suing him for breach of contract. Additionally, they spread all kinds of rumors about Meatloaf behaving violently and waving guns at people. Meatloaf finally gave up and filed bankruptcy, with $1.6 million of debts. Things started to look up when he found a new producer and recorded an album in 1986, but the album tracks all had a dance beat which didn’t pan out for Meatloaf, and he was forced to file bankruptcy again. However bankruptcy never stopped Meatloaf and today he enjoys a solid following and continues to tour to sold out crowds across the world. Meatloaf has even enjoyed many TV and Movie roles over the past decade and recently was a cast member on “The Celebrity Apprentice”.

Toni Braxton

Toni Braxton, a grammy-winning R&B singer known for her sexy, sultry voice and hit songs such as “You’re Makin’ Me High” and “Un-Break My Heart” attempted to get out of her recording contract with LaFace Records in 1998 as she felt it was no longer fair. She filed a lawsuit however LaFace turned around and counter-sued her, forcing Braxton to file bankruptcy and spend most of 1998 dealing with legal issues. Braxton was diagnosed with Lupus in 2009, and has been dealing with ongoing health issues since then. Braxton filed bankruptcy for the second time in 2010, claiming to owe up to $50 million, with a net worth of only $1 million to $10 million.

Cyndi Lauper

The “Girls Just Wanna Have Fun” hit singer has had an extremely successful recording career, including her “True Colors” album, which charted at number one. However Cyndi’s beginning was not quite as successful, with a first album release together with her original band, Blue Angels. The album was a flop, and to top it off her manger sued the Blue Angels for $80,000, forcing Lauper to file bankruptcy in 1980. Cyndi Lauper’s Estimated Net Worth Today – $6 Million

Tom Petty

Tom Petty’s first albums were a smashing success with his band the Heartbreakers, although his bank account did not grow along with his fame. Record companies are infamous for restrictive recording contracts with conditions that keep even top selling artists in the poor house. When Tom Petty’s label, Shelter Records, was sold to MCA he jumped on the opportunity to declare himself a free agent. When MCA balked, Petty paid $500,000 out of his own pocket to record his next album and held it back as a bargaining chip against MCA. In 1979, he finally declared bankruptcy to gain more leverage in the legal dispute to get out his unfavorable recording contract. MCA ultimately gave in, allowing Petty out of his original contract and signing a new $3 million contract with him. His new album, “Damn the Torpedoes” was finally released featuring “Don’t Do Me Like That” and “Refugee”, went certified double platinum, and made Tom Petty and the Heartbreakers into true rock and roll superstars.

Natalie Cole

After many successful years as a recording artist, Natalie Cole (the daughter of recording legend Nat King Cole) had a career pause and problems with drug addiction in the early 80’s. By 1985 she was doing much better, but still filed for bankruptcy protection in 1997. Her career picked up again in the late 90’s, and she won the “Hitmaker Award” for the Songwriter’s Hall of Fame in 1999 . Natalie was diagnosed with Hepatitis C in 2008 and had a life saving kidney transplant but continues to record and inspire people around the world today.

Mike Tyson

Retired former heavyweight boxing champion Mike Tyson won the WBC title as a 20 year old and quickly became one of the most famous athletes in the world. He went on to have a very successful boxing career, becoming known for his ferocious style in the ring and controversial behavior outside of the ring. Although Tyson received over $30 million for several fights and a career income estimated at $300 million, he filed bankruptcy in 2003. He had a very difficult and public divorce from ex-wife Robin Givens blaming his financial situation on excessive spending on mansions and expensive cars. Tyson also blamed bad financial advisors and embezzlement as other causes for his bankruptcy. Mike Tyson’s Estimated Net Worth today is under $5 million.

Walt Disney

Walt Disney started a company named Laugh-O-Gram in 1920 to produce his first animated fairy tales. Disney started assembling his team of animators, and legend says that the office space was infested with mice, including one mouse that had a lot of personality and received a special nickname of– Mickey. His New York-based financial backers ended up going broke, and Disney could no longer cover his payroll or his debts. The company filed for bankruptcy protection, and Disney scraped together the funds to take a bus to Hollywood. Once he arrived, he put his own name on a new production company, and invented his newest animated character. The Walt Disney Co. today is one of the largest companies in the world with a market value of almost $80 Billion!

Marion Jones

Marion Jones, an Olympic sprinter with 5 medals and endorsement deals worth millions of dollars has been fighting off financial troubles for some time now. After numerous anti-doping and other agencies made allegations against her regarding steroid use, Jones missed many meets and spent substantial amounts of money on attorneys to fight the allegations. Jones also admits her own spending habits to maintain a certain “lifestyle” have forced her deep into debt. Jones has had to sell off some real estate assets, including a $2.5 million mansion she lost to foreclosure, to settle some of her debts and try to avoid bankruptcy.

Kim Basinger

In 1993, Oscar-winning actress Kim Basinger was ordered to pay over $8 million to Main Line Pictures, after she was sued for breach of contract. She was charged with backing out of a verbal agreement to star in the film “Boxing Helena.” Basinger filed bankruptcy, and the court’s decision was later reversed during an appeal.

Ed McMahon

Apparently, the real estate foreclosure crisis affected celebrities too. The legendary Johnny Carson sidekick Ed McMahon, recently deceased, had to file bankruptcy when he came up short $644,000 on the payments for his $4.8 million home loan, and the lender filed a default notice on McMahon’s Beverly Hills mansion.

Gary Coleman

Gary Coleman, former child star of the sitcom “Diff’rent Strokes” suffered financial problems due to lifelong kidney issues and poor money management. He also had to pay a settlement due to a 1993 lawsuit. The star had earned $70,000 for each episode of the show, but in 1999 had to file for bankruptcy. In 2009, he was still struggling financially, with $72,000 of debts and an accusation that the parents who adopted him had robbed his estate of approximately $1 million.

Abe Lincoln

Abe Lincoln was the nation’s 16th President. He was forced into bankruptcy in 1833, due to a poorly performing retail business and back payments of debt. Lincoln lost his last two assets, his home and some surveying equipment, and spent 17 years paying back the rest of the money to all the friends who had lent him funds to start his business.

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Posted in Celebrity Bankruptcy , ford bankruptcy , walt disney bankruptcy

Octomom Files Bankruptcy

Octomom files bankruptcy! So, some of you may have seen this one coming... but what most of you didn't see coming was the amount of debt she racked up... how much, you ask?

Nadya Suleman also known as the "Octomom" has filed for bankruptcy, stating $962,000 in debt!

Thats right - almost a million bucks!


In an interview with the Orange County Register - the Octomom said "I have had to make some very difficult decisions this year, and filing Chapter 7 was one of them."

Suleman hopes that bankruptcy will give her family a much needed fresh start - currently she owed more than 20 times her net worth!


Suleman is filing Chapter 7 bankruptcy, which means a court-appointed trustee would liquidate her assets to pay off creditors before she is discharged from most of her debts.

Who does Suleman owe money to ? The list includes her father, the water department, a private school and DirecTV..... aSuleman also owes more than $30,000 in rent payments on her four-bedroom house.
While her debt continues to accrue, the single mother of 14 supports her children with the aid of food stamps and Social Security disability payments, she is unemployed.

Suleman's children were conceived through in vitro fertility treatments and her octuplets are the world's longest-surviving set.

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Posted in Celebrity Bankruptcy , chapter 7 , Chapter 7 Bankruptcy , octomom bankruptcy

Living Like A Celebrity Made Me Bankrupt!

MILLIONS of women dream of living like a celebrity, but life can become a nightmare for those who splash the cash.

An epidemic of overspending among women has been called the "Kerry Katona Effect" after the reality TV star went bankrupt due to her lavish lifestyle.

In just three months this year, 14,827 women were declared bankrupt and they now account for a record level of 48 per cent of personal insolvencies.

The Sun interviewed three women whose taste for all things expensive, took their bank accounts into the negatives - here is one of their stories:

Aimee, 35

AIMEE ROBINSON lives in Bexhill, East Sussex, with builder husband Marc, 37, and son Harry, 15. She has been bankrupt twice – in 1999 and 2006. She says:

"When I look back at my celebrity obsession now, it was horrific. I loved the WAG lifestyle and Cheryl Cole in particular. That was exactly the way I wanted to live.

"When I went out, I ordered Krug champagne for £150 a bottle – because that is what the stars drink.
"Even though the outfits I bought were expensive, I only wore them once. I read all the magazines to see what they were wearing and spent £800 on Dior handbags and £500 on Jimmy Choo shoes.

"My car had to look like one a celeb would drive so I bought a Mercedes SLK sports car and paid an extra £3,000 to have the dashboard encrusted with Swarovski diamonds.

"When Jessica Simpson was pictured with her Bichon Frise dog, I decided I had to have exactly the same dog. I bought a puppy for £500... and flew to America to buy her a designer outfit.

"I paid £1,000 every few months for hair extensions, had my teeth whitened, spent £1,000 on botox, £2,000 on lip injections and had a £10,000 breast enlargement, going from a 34A to a 34DD.

"At the time of my first bankruptcy I was a single mother, working as a beautician. I maxed up my credit cards and store cards until I couldn't pay any more. I was £20,000 in debt.

"The second time I had 30 credit and store cards and debts of £85,000. I'm glad I learned my lesson, but millions more young women are going to fall into the same trap."

Read the rest of the article written by The Sun.

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Posted in bankrupt women , Celebrity Bankruptcy , celebrity debt

Anna Nicole Smith Tied to Lehman Bankruptcy?

According to an article published by The Wall Street Journal, "Yes, there is a fresh connection between the late Anna Nicole Smith and the bankruptcy case involving the shell of Lehman Brothers. Buckle up.

J.P. Morgan and the remains of Lehman Brothers are fighting out in court over charges J.P. Morgan improperly siphoned billions of dollars out of Lehman in its dying days.

But J.P. Morgan late Monday said it wants to move the case out of bankruptcy court, citing the precedent of a recent Supreme Court case that involved, yup, Anna Nicole Smith, her long-dead oil tycoon husband J. Howard Marshall and Smith’s former boyfriend and lawyer, Howard K. Stern. The case was the second time the Supreme Court had weighed in on the the long-simmering dispute over who should collect money from J. Howard Marshall’s estate.

In the June ruling that has proved contentious in bankruptcy circles, the Supreme Court said a bankruptcy court didn’t have power to decide on cases beyond bankruptcy.

At issue was whether the bankruptcy court, which awarded Smith millions of dollars, should be able to wipe out the ruling of the Texas probate court, which ruled for J. Howard Marhsall’s son. (Both Smith and Pierce Marshall have since died.)

J.P. Morgan, taking the place of Pierce Marshall this time, said its court battle with Lehman similarly belongs in a federal court — not in the same New York bankruptcy court also sorting through the leftover bits of Lehman.

Don’t worry, clients. Those high powered J.P. Morgan lawyers at Wachtell Lipton have a good excuse to expense those DVD copies of “The Anna Nicole Show.” The lawyers wrote in a court filing Monday:

“Under the Supreme Court’s recent decision in Stern v. Marshall … only this Court has the authority to adjudicate Lehman Brothers’ claims….Based on that test, the Supreme Court in Stern further held that common-law claims brought by a bankrupt debtor against its creditor could not be adjudicated by the bankruptcy court, even if the common law claims raise issues that overlap with what must be resolved in ruling on the creditor’s proof of claim. The Supreme Court’s decision in Stern prevents the bankruptcy court from adjudicating any of the causes of action asserted against JPMorgan in this lawsuit.”

(Read the J.P. Morgan court filing. Reuters also wrote earlier about J.P. Morgan’s request to move the court case.)"

Read the rest of the article published by Wall Street Journal.

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Posted in Anna Nicole Smith , bankruptcy court , Celebrity Bankruptcy , Lehman Brothers Bankruptcy

Kerry Katona - Celebrity Spokewoman for Going Broke??

According to a recent article published in The Sun...

KERRY Katona has been slammed for "inspiring" more women than ever to let themselves go bankrupt.

The reality TV star, 31, has been branded a "bankruptcy role model" following her well-publicised struggle to organise her finances.

And latest figures show that 14,827 women were declared broke in the second quarter of 2011 thanks to being unable to control spiralling credit and store card repayments in their bid to chase a WAG lifestyle.
Women now account for a record level of 48 per cent of personal insolvencies, with those aged 18 to 35 overtaking men for the first time.

Former I'm A Celebrity winner Kerry declared bankruptcy in 2008 over an £82,000 outstanding tax bill.
Mark Sands, head of personal insolvency at RSM Tenton, said: "People blame female money troubles on almost everything from a culture of consumption to alleged 'bankruptcy role models' such as Kerry Katona.
"Spending habits and attitudes to debt have changed over the past generation at the same time that women have achieved ever greater levels of financial independence.

"As women become more and more independent, lenders see them as a more and more lucrative market.
"There's an element of truth that the offer of buying handbags with pricey store cards is sending more and more women bust."

Read the original article here.

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Posted in 50 cent bankruptcy , Celebrity Bankruptcy , celebrity debt , Kerry Katona bankruptcy , women in debt

The Broke and The Beautiful

The Wall Street Journal has added a new section to their website, a weekly column that focuses on beauftiful people who are, well broke.

This week their column showcased actress Eva Longoria, Rapper 50 Cent, R Kelly and of course, the LA Dodgers.

According to the column, "Eva Longoria may be playing a town mayor in her new movie, but the “Desperate Housewives” actress was on the other side of the bench Wednesday. According to Vegas Inc., attorneys for creditors Mali and Ronen Nachum—who have been battling Longoria’s Beso LLC for money—responded to the closure of Beso’s Eve nightclub by picking up some dance moves of their own, in the form of an emergency motion for a trustee for the business. The Nachums say that a trustee could review Beso’s financial records and see whether it made sense to close Eve, noting the closure of the business’s “most important asset” is a big concern for Beso’s feasibility.

But Beso isn’t the only one on the roulette wheel this week. Las Vegas’s “original celebrity chef,” André Rochat, filed for Chapter 11 protection along with his restaurants located at the Palms Casino Resort and the Monte Carlo. As Bankruptcy Beat reported, Rochat’s Alizé and Andre’s took on too much debt while the economy tanked. Next on the menu: finding a way to reorganize.

Rapper Young Buck found 50 Cent in the club this week—the bankruptcy-court club. Bankruptcy Beat reported earlier this week that 50 is fighting his former protégé’s bankruptcy-exit plan, querying as to just how Young Buck will manage his business affairs post-bankruptcy. Unfortunately, it looks like it’s too late in the game for Young Buck and his former mentor to bond over a bottle of bub.

A bottle full of bubbly is just what R. Kelly might need, though. As Developments reported, the hip-hop artist might lose his mansion to foreclosure. But R. Kelly isn’t the only hip-hop artist to be trapped in the financial closet. (See Chamilionaire and Xzibit, for example.) As Developments noted, all of this brings up questions on such artists’ inner thoughts about debt obligations and the economy".

To read the entire article or to subscribe to the new Wall Street Journal Column, visit their website.

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Posted in 50 cent bankruptcy , broke and beautiful column , Celebrity Bankruptcy , celebrity debt , eva longoria bankruptcy , r kelly bankruptcy , Wall Street Journal

The Most Famous Bankruptcies of 2011

While the question of "who" holds the title of the most infamous bankruptcy of 2011 could be disputed; one fact is not up for dispute, four successful celebrities filed bankruptcy this year. In fact,  for one of these celebrities this is the second time they have filed bankruptcy.

Toni Braxton
Please don't take the Grammys! The six-time Grammy award winner is making headlines as her six Grammy Awards may be sold to cover her bankruptcy debt. It has been reported that Braxton owes $125,000 to creditors and that the trustee overseeing her bankruptcy liquidation could in fact seize and sell any property covered by the agreement including her awards.

Toni Braxton is not a stranger to the process, she has filed bankruptcy not once, but twice. Braxton blamed her reported debts of between $10 million and $50 million on health problems and was forced to cancel a Las Vegas run because of heart problems and then revealed that she had lupus which limited her ability to work. Health related bills have been cited as the number one reason for most bankruptcy filings.



Sonja Morgan

Sonja is the former wife of John Adams Morgan of the whole J.P. Morgan lineage. She is also a Bravo celebrity appearing on the Real Housewives of New York throwing fabulous parties and not wearing pants.

She claims to be worth $20 million but has debts totaling about $19.8 million.






Eva Longoria

She might not be a real life Desperate Housewife, but Eva Longoria is desperate to save her business interests.  Longoria filed for bankruptcy as a “preemptive measure” to protect her restaurant and night club, Beso, from a lawsuit brought by a business partner.


Lenny Dykstra

Earlier this month Dykstra was indicted by a Federal Judge for bankruptcy fraud and theft.  Prosecutors say that he either sold, destroyed or removed a stove, chandelier and other items totaling $400,000 from his $18.5 million home after filing for bankruptcy.

He is also accused of lying about the value of his estate so that he could keep profiting while hiding assets from the bankruptcy courts.  According to his now former attorney Mark Werksman, “He didn’t belong in bankruptcy, he had a problem dealing with the trustees dismantling his property and investments.”

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Posted in Celebrity Bankruptcy , Eva Longoria , Lenny Dykstra , Sonja Morgan , Toni Braxton

10 Celebrities Who Filed Bankruptcy

1. MC Hammer
   Ask anyone who grew up in the 1990's to name an MC Hammer song, and I can guarantee that not only do they know lyrics, but they also had the dance moves to go with them. As one of the biggest hit makers during his time, MC Hammer had an entourage that rivaled the Queen of England's- and it showed on his bankroll.
   
   He paid 300 people approximately $500,000 a month. Apparently he wasn't "Too legit to quit" because in 1996 he filed for bankruptcy to stop paying on the $13 million he owed. The debts included $110, 000 to an interior decorator, $100,000 to the IRS, and over $500,000 to a lawyer.
   
   
   
2. Burt Reynolds
   In the 1970's Burt Reynolds was the man. He owned mansions on both coasts, a helicopter, a Florida ranch and a hot wife. Life couldn't get better, so instead it got worse.
   
   After a few not-so-stellar movie choices, and a pretty pricey divorce from his wife, his finances weren't the hottest. In 1996 Reynolds filed for a Chapter 11 bankruptcy, owing over $10 million in debt. He was able to keep his $2.5 million dollar Florida home under the Chapter 11 homestead exemption, and paid back a portion of the debt over the next two years.
   
   
   
3. Larry King
   Larry King estimated wealth today is at $50 million, nearly 30 years after filing bankruptcy. In 1978 King was in a dire financial situation. He had been accused of stealing money from his business partner and charged with grand larceny. The charges were dropped, but the scandal hadn't help with his career.
   
   Eventually his talent shined as the scandal dimmed, and after a few good money moves (and a few good prenups -he's been married seven times), he's found monetary success.
   
   
   
4. Willie Nelson Nelson had a similar problem as MC Hammer; he liked a big entourage and he paid them well. So well, in fact, that his sideman drummer is in the "Guinnes Book of World Records" as the world's highest-paid for his position.
   
   In 1990 the government was tired of waiting for $16.7 million in past taxes, so they seized his bank accounts, his Texas ranch, and his gold records. Nelson released an album called "The IRS Tapes: Who Will Buy My Memories?"- and became a Taco Bell spokesperson- to help settle his debts. In 1993 his bill was officially paid and his finances back in stable order.
   
   
   
5. Donald Trump
   Besides his hair, Donald Trump is famous for his successful real estate adventures and extravagant lifestyle. And then there are his bankruptcies, err, his casinos. His casino 'empire' first filed bankruptcy in 1992. Then again in 2004. And then again in February 2009.
   
   He's lost billions in this business venture, yet fortunately for Trump he has his TV gig and real estate to keep his personal finances afloat.
   
   
   
   Free Case Evaluation
   
   
   
6. Don Johnson
   Pay attention to this one, it has a better plot line than most of the shows this celebrity has been a part. Don Johnson, known mostly for his Miami Vice days, is the owner of a poorly named company called Timber Doodle Glad Equity Venture LLC, and he also owns a ranch called Woody Creek in Denver, Colorado.
   
   In March of 2004 Johnson owed $950,000 to City National Bank, which was just a small part of his $14.5 million in debts. City National Bank filed a lawsuit to auction off his house in order to pay for their portion. So Johnson had his company file Chapter 11 bankruptcy, to use the money that should have been going to creditors to pay off his personal debts, which he was able to with less than 24 hours before the auction of his ranch. Whew... what a nail biter!
   
   
   
7. Mike Tyson
   As one of the youngest heavyweight champions ever, Mike Tyson earned millions for just one fight, receiving over $300 million in his career. He was a big guy, making big money, and spent it on a big lifestyle. One of those big purchases was a pair of pet tigers, which was just a small dent in his big debt.
   
   Tyson owed $13.3 million to the IRS, had $400,000 in monthly expenses, and had amassed a bill of $27 million dollars owed to creditors. In 2003 both he and his company, Mike Tyson Enterprises, filed for bankruptcy. Now all he has is his tattoo and gold teeth.
   
   
   
8. Wayne Newton
   Wayne Newton, also known as Mr. Las Vegas because of his 30,000 solo shows in the city, had to file for bankruptcy in 1992. He spent years suing NBC in a nasty libel case about 'apparent' ties with the mafia and eventually accrued over $25 million in debt, including $341,000 for back taxes.
   
   Luckily for him, dark hair and fake tans brought him fame and fortune at the Stardust Hotel, which has a contract that 'apparently' pays him $25 million a year for performing 40 weeks out of the year for 10 years. He's been sittin' pretty in sin city since 1999.
   
   
   
9. Kim Basinger
   Kim Basinger is a model turned actress, and a good one at that. Not only is she good looking, but she made good career moves that led her to win a Golden Globe Award, Academy Award and a Screen Actors Guild Award.
   
   Unfortunately, she's not as good as an entrepreneur. In 1989 Basinger bought a small town in Georgia that she wanted to turn into a Hollywood hangout with movie studios and film festivals. She also decided to back out of the movie "Boxing Helena" (good career move). Basinger was sued for backing out of the movie and after encountering financial difficulties with make a small city in Georgia cool, she filed for bankruptcy in the early 1990's.
   
   
   
10. Cyndi Lauper
    In the 1980's you couldn't go an hour without hearing one of Cyndi Lauper's pop hits, but it wasn't always that way. Before her hit album "She's So Unusual," her previous band called Blue Angel released an album that did not make any money. The band fired their manager, broke up and then sued by their ex-manager for breach of contract.
    
    In 1980 Lauper had to file for bankruptcy and work in retail just to scrape by. Fortunately, she was soon just a girl having fun at the top of the charts and a huge pile of money.

Source: http://www.bankruptcyhome.com/Celebrities-Filing-Bankruptcy.htm

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Posted in Celebrity Bankruptcy , donald trump , larry king , mc hammer

Ozzy Osbourne owes millions in tax debt, could bankruptcy be next ?

Tax Season is a nightmare for one celebrity couple who owes millions in taxes, could bankruptcy be in their future? One of the UK's wealthiest couples, Ozzy and Sharon Osbourne could lose their US home if they don’t pay the $2 million tax debt on it.

Aside from Ozzy’s music career, Sharon has had success with the Osbourne’s reality show, being a judge on the X Factor and America’s Got Talent, and now a panelist on The Talk. Sharon was also the first of the Osbourne clan to run into tax problems, when in 2009 she was slapped with a $23,000 tax bill to the State of California for payments going back to 2007.

TMZ has reported that daughter Kelly was hit with a tax lien of $34,000 last month.
According to an article on SanDiego.com, "Over the last few years, Ozzy and Sharon have accumulated a bit of debt. Documents filed by tax authorities state that “John” and Sharon Osbourne, ‘self-employed’, owe $718,948 in tax from 2008, and $1,024,175 from 2009.

Sharon did what most celebrities would do in this situation. She fired off a message on Twitter last Saturday. It said: You can’t rely on anyone but yourself. You have to be on top of your own business affairs. My fault. Lesson learned.

The most famous tax problem celebrity is Willie Nelson, who was hit with a $16.7 million tax bill in 1990. That stemmed from him not paying taxes between ’78 and ’82, and owing $6.5 mil. An additional $10.2 million was tacked on in penalties and interest. The IRS froze his accounts and auctioned off items in his personal position. Many of his fans bought those items, only to return them back to Nelson. Eventually, the IRS claimed Nelson owed $30 million, but that they’d settle for $17 million. This got Nelson poking fun of that in various commercials, and even releasing the album IRS Tapes: Who’ll Buy My Memories?
Releasing a record like that was nothing new. Marvin Gaye released an album called Here, My Dear, when he owed money on alimony payments.

When John Cleese played Spreckels Theatre here in 2009, he was calling it The Alimony Tour. His third wife got a $13 million divorce settlement, and he had to pay her a million a year in alimony. Perhaps he should’ve known better before marrying wife #3, but the comedic actor and Monty Python member does have a law degree – and is smart enough never to have run afoul of the IRS.

The Isley Brothers lead singer Ronald declared bankruptcy in 1997 after the IRS seized his property, including a yacht. He’s currently serving a 37-month sentence for tax evasion and failing to file a tax return.
Mr. Vegas, Wayne Newton, filed for bankruptcy in the early ‘90s with $20 million of debt. He got back into financial trouble in 2005, when the IRS claimed he owed them almost $2 million in back taxes.

Another singer that had a big Vegas show – Toni Braxton – filed for Chapter 7 a second time, late last year. She had well over $10 million in unpaid debts to numerous creditors, one of which was the IRS.
Wesley Snipes was recently given a sentence for years of failure to pay taxes. What a lot of people don’t realize is, the IRS is really good about working on payment plans with people, and the interest isn’t outrageous. Snipes was given jail time for continuing to run afoul of the tax laws. He made $40 million since 1999 (thanks mostly to the Blade films) and between 1999 and 2004, he never filed taxes. In 2006, he even tried to get a $7 million refund.

What a lot of people don’t realize is, if you don’t file, the IRS does a Substitute ForReturn for you. This doesn’t work so well for the rich and famous, as the IRS isn’t writing off all the things those folks probably would for deductions.

These days the IRS has more sophisticated resources and incentives (hundreds of billions owed to the federal government) for tracking down non-filers.

I’m guessing the Osbourne’s are in no real danger of losing anything they own. The IRS would have no problem believing they could pay back anything they owe from future earnings, and wouldn’t make them sell houses or personal items, the way David Crosby had to sell a yacht for a million bucks when he ran into financial problems.

Ozzy’s son Jack Osbourne has a production company (Jacko Productions) that has a documentary on Ozzy that is supposed to hit the theatres later this year. One of the things covered is all the craziness his dad was involved in over the years. We assume Jack has learned from the things that almost killed his father, and made him the punchline to many jokes."

When millions are running to their mailbox to file their taxes next week, the lines may be one shorter... if so, keep watching Ozzy may be making bankruptcy headlines in the future.

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Posted in Celebrity Bankruptcy , celebrity debt , irs tax problems , Ozzy Osbourne

How did they lose ALL of that money ??

OK, you've got me! You have read the long list of famous celebrities who filed bankruptcy, and I know you are asking yourself, seriously how did they spend all of that money ? The answer is too quickly!

All kidding aside, bankruptcy can happen to anyone - it does not discriminate based upon beauty, job title or how good of a person you are in, in fact you can have a perfect financial plan and circumstances can change in an instant, leaving you facing bankruptcy.

Today, we are going to focus on a celebrity bankruptcy case that made headlines around the world and in the rap community - the bankruptcy case of Marion Knight, Jr better known as Suge Knight,  former CEO of Death Row Records.

Suge Knight, co-founder and former CEO of Death Row Records, made his name and his fortune in the hip hop community, when his record label dominated the charts with a long list of successful artists including Tupac Shakur, Dr. Dre, Snoop Dogg and Tha Dog Pound.

His circumstances changed, when Dr. Dre decided to leave and form his own label. Things continued to decline and turned tragic when Tupac Shakur was murdered in a drive-by shooting in Las Vegas NV in September of 1996.

In March 1997, Shakur's East Coast rival, The Notorious B.I.G., was murdered in a similar fashion and speculation immediately arose that Knight was involved

In between, the tragic losses of Tupac Shakur and The Notorius B.I.G. - Shuge Night, violated his probation, a choice that cost him his freedom.  In 1997, he was sentenced to nine years for the violation.
He was released four years later but he didn't stay out of trouble for long in 2003, he was again sent to proison for violating parole after stricking a parking lot attendant.

The tragedy, violence and speculation led to the decline of the label. Despite trying to save the label by releasing a new Snoop Dogg album and posthumous Tupac Shakur albums, the label was in financial trouble.

His label was in financial trouble and he was also facing civil litigation, in which he was ordered to pay $107 million dollars to Lydia Harris, who claimed she was cheated out of a 50% stake in Death Row Records.

On April 4, 2006, Suge Knight filed bankruptcy. According to Wikipedia,

"Bankruptcy documents filed showed Knight had no income this year from employment or operation of a business. According to financial records, his bank account contained just $11, and he owned clothing worth $1,000, furniture and appliances valued at $2,000, and jewelry worth $25,000. He also testified that the last time he had checked the label’s financial records was at least 10 years prior. Knight’s lawyer said that his client was still “at the helm” of Death Row and had been working on securing distribution deals for the label’s catalog."

Suge Knight missed two meetings with creditors after injuring himself in a motorcycle accident and experiencing a death in his family. On July 7, 2007 a federal judge ordered a bankruptcy trustee takeover of Suge Knight's Death Row Records, saying the record label had undergone a gross amount of mismanagement.

Knight filed for Chapter 11 Bankruptcy protection, which allows a company to continue business operations while restructuring.

In June 2007, he placed his seven-bedroom, 9½-bath home in Malibu on the market for $6.2 million as part of his "financial makeover". The mansion was finally sold in December 2008 in bankruptcy court for $4.56 million.

To read more about Suge Knight's Bankruptcy, click here.
Need more information on bankruptcy or want to schedule a free consultation ? Contact Foster Law Offices.

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Posted in Celebrity Bankruptcy , Chapter 11 Bankruptcy , Suge Knight