Celebrity Wealth & Bankruptcy
The two seem to go hand-in-hand for many celebrities who catapult to fame, only to be shot down from their glory with a fat atx bill, a costly divorce, or a poor investment decision. In this post, we’ll be discussing how some of the most high-profile and prolific celebrities have had to undergo bankruptcy, restructuring, and ultimately adjust their lifestyle considerably. Read on to learn more about some of the most popular cases of celebrity bankruptcy and how you yourself can avoid such a predicament.
”Hammer-Time!” was something MC Hammer chanted whenever he had the chance to do so, yet the ultimate hammer came down upon his finances after he decided to live well beyond his means. Once possessing a net worth upwards of $33,000,000, he was able to spend down his earnings to the tune of -$13,000,000. All of this excessive spending was due to supplying his large entourage with a number of funds, gifts, and niceties. He ultimately had to file for bankruptcy, and ended up having his Atlanta home foreclosed and restructure his entire life.
Burt Reynolds was one of the most famous actors in the late 1970s to 1980s, but that didn’t stop him from having to file for bankruptcy in 1996. Due to an extremely costly divorce, Reynolds ultimately had to file for Chapter 11 Bankruptcy after divorce from his wife, Loni Anderson. Now he might not be able to even afford a studio apartment in Minneapolis.
Toni Braxton dropped multiple hit records in the 1990s, yet in 2010 and in 2013, she filed for bankruptcy after owing more than $30,000,000 in debt. She’s often blamed the music industry for her financial downfall, yet it ultimately is up to the individual to ensure their finances are kept up properly. Strangely, just six months after her latest bankruptcy filing in California, she purchased a $3,000,000 home in Calabasas. You would hope she would’ve learned to downsize her lifestyle after filing for two bankruptcies in less than five years, but who knows the whole story?
Mickey Rooney in the 1950s was a star. He amassed a fortune of around $12,000,000 back then, yet by the 1960s, his popularity was diminishing, as were his returns. Before filing for bankruptcy, he ended up with only $500 to his name. In Rooney’s case, he filed bankruptcy to save his wife’s home in Florida. This is a lesson to those who accumulate a large amount of wealth in a short period of time: don’t spend it all and invest it wisely.
Protecting Your Assets, Investing Wisely, & Living Within Your Means
Protecting your assets, investing wisely, and living within your means is one of the best things you can do for yourself, regardless of whether or not you’re a celebrity. “More Money, More Problems…” rings true in many instances of those who have never encountered such large fortunes before. Sadly many of these mansions have to be auctioned off. Choosing to be responsible with your finances from the start will allow you to live a lower-stress lifestyle, enjoy spending time with friends and family, and ultimately will allow you to pass on your wealth to your next generation. We hope you’ve enjoyed this post and if you have any questions or comments, feel free to post them below and we’ll be sure to respond.