Celebrity Bankruptcy

With the recession painting a dark picture for the world economy, the word “bankruptcy” is on the tips of more and more tongues. The wealthy aren’t even spared from financial peril as one bad investment can lead them straight from riches to rags. Although being unable to pay one’s creditors isn’t an ideal situation, it may not be the ultimate financial ruin that everyone thinks.

A number of successful people have found themselves drowning in debt only to bounce back, contact a bankruptcy lawyer and regain their foothold in the world they once knew.

Kim Bassinger

After backing out of the star role to the film Boxing Helena, Kim Bassinger was ordered by a judge to pay $8.1 million to Main Line Pictures for breaking the verbal commitment. Soon after, she filed for bankruptcy selling her $20 million investment in Braselton only to receive $1 million for it. The ruling was later appealed and an out-of-court settlement was reached between both parties.

Walt Disney

Known for creating the “happiest place on earth”, all wasn’t well with Mr. Disney when he had to file for bankruptcy in 1921. He was forced to file for bankruptcy when his financial investors backed out of his company Laugh-O-Gram Corporation in Kansas City, Missouri. Fate was on his side because Disney soon headed off to Hollywood and became one of the highest paid animators in history.

Burt Reynolds

Burt Reynolds became one of the biggest actors in the 1970′s. He lived his life as though he would always be in the lime-light owning mansions on both coasts, a helicopter, and a Florida ranch. Eventually, his financial fortune began to turn sour. Absent-minded career choices coupled with a pricey divorce from Loni Anderson forced Mr. Reynolds to declare Chapter 11 Bankruptcy. Owing $10 million to creditors by 1996, he successfully emerged from bankruptcy in 1998 with his Florida ranch still in his possession.

Francis Ford Coppola

Director of the Godfather Trilogy and winner of five Academy Awards before the age of 40, Francis Ford Coppola was $300,000 in debt before he made the first Godfather film. He was able to bring himself out of that debt but soon returned after his 1982 musical One From The Heart did poorly at the box office. Fortunately, his mother gave him money to borrow which he invested into a wine business that again turned his financial future around.

Toni Braxton

In the years leading up to her 1998 filing for bankruptcy, Toni Braxton sold over 15  million albums. Some believe she filed because she wanted to end her recording contract with the label LaFace. At the time of filing, Braxton was $3.9 million in debt and all of her household possessions, including two Grammys, were priced to sell. In 1999, however, she was awarded a new record contract worth $25 million with the same record label.

Major League Baseball’s Texas Rangers, who filed for bankruptcy as part of their search for new ownership, are caught in a bit of a rundown.  MLB Commissioner Bud Selig has vocally supported one prospective group, led by Hall of Fame pitcher Nolan Ryan, stating, “Baseball has always had the right to select its ownership. There’s no doubt in my mind that we have the right to select ownership, and we will do that.”

This position taken by MLB has upset the creditors of the Rangers, who believe that the Ryan group does not have the most competitive bid for the team.  One of Selig’s lawyers threatened on a conference call that if the Rangers did not sell to the Ryan group, then MLB would take over the franchise–except in much more salty language.

Though the Rangers are only one of three remaining teams to never play in the World Series, the ownership issues are one Texas-sized fiasco for Major League Baseball, and bankruptcy attorneys all across the Lone Star State should take notice.

Will blockbuster be in need of a bankruptcy lawyer soon? The former king of video and game rentals could be tumbling… but not without a fight.  In recent years with business hits like Netflix (established in 1997), Blockbuster has faced a challenging last few years- to say the least.  The first Blockbuster store opened in Downtown Dallas, Texas in 1985 when they first began their courtship of the video/gaming industry.  In the last few years, Blockbuster has reported billions of dollars in loss, as well as consumer loyalty.

On Friday, April 16^th Blockbuster announced that they would be postponing the annual shareholders meeting until June 26, 2010.  Why the delay?  It is in order to plan an restructure the company debt.

So what strategies is Blockbuster working on to save themselves?  They have paired up with NCR ( a global tech company providing solutions), to make video games and movies available to consumers at self serve kiosks.  This is something that can be seen across the nation already in places like your local grocery store.  The plan includes an expansion of some 10,000 kiosks and the closing of 1,000 stores.  Another part of their comeback strategy includes raising the price from $1 a day to $2 for new movie releases.  These are just a couple of plans in the making for Blockbuster- is it enough to save them from filing bankruptcy after all is said and done?

Lorrie Morgan filed for Chapter 7 bankruptcy in federal court in Nashville, TN,  in October of 2008. At the time, Morgan released a statement calling the bankruptcy “an unfortunate yet necessary part of the restructuring of my business.” She must have had excellent Nashville bankruptcy attorneys, because she was right. Since filing for bankruptcy, Morgan has released a new album with a hit on the top 100 country charts, has a DVD of her recording sessions to be released for fans, is with the growing independent record label Country Crossing Records,  and is a member of the Broadway production of Pure Country. Lorrie Morgan shows how sometimes filing for bankruptcy can be a good thing.

It all starts with Greed.  Greed, Greed, Greed.  Why is it that people who make a lot of money always end up broke?  Oscar-winning actor Nicolas Cage is filing suit against his ex-business manager Samuel Levin for $19 Million in damages for leaving him on the edge of financial collapse.

Levin is countersuing Cage, claiming the star failed to take his advice to curb his lavish spending habits.

Why do these people put so much trust in others?  Cause they want more!  More money, more fame, more houses, more cars, more toys.  I’m sure you’ve all hear what Mr. Cage spends his money on…

• Bought a Dinosaur Skull for $276,000
• King Cobra Snakes w/ Antidote (really? why?)
• Action Comics #1 (actually I think this one is pretty cool)
• Has two islands down in the Bahamas (one isn’t enough?)
• And a whole bunch of properties

Some people just live too big.  Well, it’s time to trade it all in.  Hope one of those houses wasn’t in Texas.  I know of a good Dallas bankruptcy lawyer if you need one.

And the story gets even worst for Nicolas Cage.  His ex-girlfriend is claiming that he owes her $13+ and their Los Angles’ Hancock Park neighborhood home, which he has been ordered to leave.

Part of Cage’s problem also comes from him not paying his taxes in 2007 and owes the Internal Revenue Service more than $6.6 million.  If ol’ Nicolas just put his money away for a rainy day rather then living the high life, it probably wouldn’t be pouring.

Well, don’t forget about that Dallas Bankruptcy Attorney if you’re ever in town.