Celebrities File Bankruptcy, Too
It’s difficult to fathom someone of great wealth, glamour, and media coverage could find them selves filing bankruptcy at some point in their career. While most never may hear of such a thing happening because being a celebrity opens up various methods of getting back on top of credit after filing.
Clarissa Dickson Wright has filed bankruptcy over three times in her career. Apparently, the first bankruptcy was the result of a champagne bill charged from her mother’s funeral.
TV stars, sports stars, government officials and movie stars are all among the multitude of celebrities who file for bankruptcy at some point in their career. Most of bankruptcy cases start with over spending when income is good and doesn’t stop when the paychecks do. Living in excess and buying unaffordable dreams leave celebrities in a financial bind, with no way out but to file bankruptcy.
Kim Basinger is known for her grand purchase of a complete town. She bought Braselton, Georgia for the lump sum of 20 million dollars. Only after being sued for breach of contract did she have to sell the town and then file for bankruptcy. Most cases among celebrities aren’t brought on by such extreme purchases. Usually bankruptcy will be filed as a result of over spending in times of good income and not preparing for times of lesser income. Mike Tyson once lived a lifestyle that required 400,000 dollars a month to continue living. After filing for bankruptcy Tyson finds himself in a modest rented home out of Phoenix, AZ. There are also many myths on bankruptcy too.
Most celebrities do not financially prepare for their future because they don’t want to believe they’ll ever be out of the prime light. On the other hand, every day normal people realize the value of their salary and put forth such an effort to earn it, they have every right to believe the source of income will continue to flow, as long as they continue to work. Seniority and job security pave waves for the average American to feel a consistent, increasing flow of money. In a celebrities mind, they feel the same way the average American does about their money flow, but at such high payments they don’t prepare for a lull in their public career. Celebrities will often take their 15 minutes of fame for granted and not prepare for a future without a new contract and more money each and every day. They don’t realize what they are making today, isn’t going to be the same income tomorrow because the public changes their flavor in actors more often than they change their oil! Athletes fall into a similar category. In contrast, an athlete’s career weighs heavily on their physical performance capabilities, as well as their popularity. Athletes and celebrities alike, tend to hit a wall once the booming paychecks stop rolling in. Accountants could try repeatedly to warn them about the financial hardships they could endure if they don’t start preparing for less income. Most celebrities ignore the news in the midst of their high point of their career. Actors and actresses may dismiss a few bad reviews without taking into account what might happen to their career as a result.
These kinds of problems led to the creation of an industry specializing in celebrity money management and keep the checkbook balanced against frivolous spending. Finance officers watch their clients closely to make sure they aren’t making any bank-breaking purchases. This paves way for an interesting example of a celebrity who bought his debt: Rod Hull purchased an Elizabethan Mansion in 1987 for 387 thousand pounds and spent an additional 500 thousand pounds repairing it. Looming taxes forced the mansion into repossession and began a world of financial trouble for Mr. Hull. Celebrities are humans like the rest of us. Although, they can be great role models in how the average American should not foolishly spend their money on excesses and purchases. Indulgence to the good things in life can be necessary, at times. Just make sure you budget for those kinds of purchases, or you will find yourself in a world of financial hurt. Let’s bring the idea home with a final comparison. Kim Basinger made the mistake of buying a 20 Million dollar city. Can you see yourself making the mistake of buying a 100k sports car if your budget didn’t allow it?
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Tags: Avoid Going Bankrupt, bankrupt celebrities