Many people file for bankruptcy, even famous people who have earned millions of dollars through television, film, or winning the lottery. Often, the financial woes of the affluent are exacerbated because they are more in debt than the average person. Here are 5 famous people who ended up going bankrupt, and what to do if you and your loved ones are struggling financially.
1. Suge Knight
Suge Knight, the former CEO of production company Death Row Records, made millions of dollars producing the music of well-known artists like 2-Pac and Snoop Dogg. However, he was accused of cheating Lydia Harris out of half the stake in the company and was sued successfully to the tune of $107 million. In 2006, the producer filed for bankruptcy and had just $11 in his pocket. Knight has since recovered and started a new record production firm.
2. Willie Nelson
Although most people know who this singer and songwriter is, many people are unaware that he was in such deep financial trouble. The IRS sued him for $16.7 million worth of back taxes, seizing his assets in the process. His accounting firm was at fault for the tax problems and Nelson in turn sued them, winning enough to pay back his tax debts fully by 1993.
3. Debbie Reynolds
This 1950’s actress has always been plagued with financial and relationship problems, and even though she was paid multiple millions for her roles, she lost it all when her second husband got into financial trouble over poor investment choices and frequent gambling. After divorcing him she recovered, but bought a casino that never had enough cash coming in. She sold the casino and declared bankruptcy, selling everything she owned in 1997.
4. Bud Post
Bud Post is the famous lottery winner who held a $16.2 million winning ticket in 1988. Instead of spending the money wisely and investing it properly, he blew it on multiple homes, several vehicles, and new electronics that cost hundreds of thousands of dollars. Naturally he ran out of funds and ended up having to file for bankruptcy. He fell into a depression and claimed that winning the national lottery ruined his life. He died in 2006 without assets or cash to his name.
5. Kim Basinger
Kim Basinger was a well-known actress and made roughly $10 million per movie in the 1990’s. She decided to purchase a small town in Georgia with the idea to turn it into a tourist attraction, but it never panned out. She pulled out of a movie contract that cost her $8 million and subsequently filed for bankruptcy, selling her Georgia town for $19 million less than she paid for it.
Who to Call When You’re Drowning in Debt
It’s not uncommon to have money problems, and even if you don’t have millions of dollars on the line like the above celebrities, struggling with debt is still a frightening experience. At the Law Office of Howard Tagg, we can help you get back on track financially and rebuild your life on solid financial footing. Contact an experienced Texas bankruptcy attorney today by calling (903) 581-9961.