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We have garnered a list of some prominent names who had gone bankrupt in the past.
Regardless of their financial status, anyone can file for personal bankruptcy due to excessive debts that they can not handle. Just as an average person gets wind up in debt, even the wealthy can experience the same due to poor mismanagement of funds. However, bankruptcy has always been a helpful tool for people to begin their journey to financial recovery. It will keep creditors off, let go of debts, and give the debtor to make new financial decisions.
As an individual, it is very okay to file for personal bankruptcy – no shame, no loss. It marks the beginning of a fresh start. We have garnered a list of some prominent names who had gone bankrupt in the past.
Do the Rich Go Bankrupt?
Famous American professional Boxer Mike Tyson filed for personal bankruptcy in 2003, having about $23 million in debt. The boxer had to pay his divorce settlement of $9 and a separate $4 million to the British tax authorities. Also, among his debts was $13.4 million, which he was to pay to the Internal Revenue Service (IRS). Thanks to a memoir released in 2013 and the Mike Tyson Mysteries TV Show, the boxer is recovering from his financial problems.
In 2009, American TV personality and The Real Housewives of New Jersey star Teresa Giudice filed for bankruptcy. The TV personality declared personal bankruptcy along with her husband, Joe Giudice. Following the filing, creditors claimed that the couple hid some of their assets which is a punishable crime under the law. As a result, the Giudices were charged with bankruptcy fraud and conspiracy to commit wire and bank fraud. Teresa served time in the federal prison, and her husband is still incarcerated. Eventually, the American TV personality was able to sort her case in 2016.
Award-winning American TV and radio host Larry King filed for personal bankruptcy in 1978, with a total of $352 million in debt. Now, Larry King has an estimated net worth of $150 million. Similarly, Oscar-winning actress Kim Basinger also declared bankruptcy in the early 1990s. The actress ran into debt after she failed on an agreement to feature in a film, “Boxing Helena.” As a result of her failure to hold up on the deal, she was asked to pay $8.1 million to Maine Line Pictures. Basinger has recovered from the financial crisis after appearing in films like “Cellular” and “8 Mile.”
Bankruptcy: A Strategic Business Decision
According to Donald Trump, bankruptcy is a strategic business decision. Trump also faced some financial challenges in the 1990s. Although the former US president never declared personal bankruptcy, his businesses had some financial downside. It started with his Trump Taj Mahal casino in Atlantic City.
Furthermore, American singer and actor Meat Loaf declared bankruptcy in the 1980s as songwriter Jum Steinman filed a lawsuit against him. The actor has recovered since then and has released a hit album. Loaf is currently worth $25 million.