Celebrity Bankruptcies

Thanks to the current economic downturn, some financially responsible individuals find themselves filing for bankruptcy to relieve extensive debts. In spite of the embarrassment of bankruptcy, many average individuals deal with unavoidable circumstances ranging from extensive hospital bills to using credit to feed their families after the loss of a job.

No good excuse for many celebrity bankruptcy filings

Many celebrities cannot blame unforeseen circumstances for their excessive debt. CELEBRITY Net Worth is a website that focuses on news and financial information pertaining to the rich and famous worldwide. In its article, 15 Athletes Gone Bankrupt, it lists many well-known athletes and the circumstances behind their financial troubles. Names you may recognize include:

• Mike Tyson. Tyson has earned more than $400 million, yet he listed debts of $27 million in a 2003 bankruptcy. These debts were largely caused by an extravagant lifestyle.
• Kenny Anderson. Anderson managed to go through about $60 million in NBA earnings. Yes, divorcing his first wife cost him half of his assets and he has to support several children, but he may have fared better without taking a $10,000 monthly allowance, leaving him with $41,000 in monthly expenses at the time of his bankruptcy filing.
• Jack Clark. Clark liked luxury cars, listing 18 cars among his assets in his bankruptcy filing during his second year with the Boston Red Sox in 1992. At that time, his debt amounted to $7 million, including $400,000 in Federal and state taxes, which cannot be discharged in bankruptcy.

For many individuals in Georgia, bankruptcy can provide a fresh start

Many celebrities fail to learn from their past financial errors, but the majority of average individuals in Georgia do not fall into the same bad habits after they have had to file for bankruptcy once. A Marietta bankruptcy lawyer can help ensure that bankruptcy provides the best option for clients facing debt. He or she can guide clients through a complex process—and help them learn how to avoid future debt issues.

About the Author Otis S

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