Bankruptcy Can Happen To Anyone
- Bankruptcies Involving Famous People
By Laura J. Margulies
People
facing financial difficulties often feel like they are the only ones having
money troubles. They often feel embarrassed and isolated from the rest of the
community. They are reluctant of file for bankruptcy because they are afraid
they will be considered failures and irresponsible by the public. They do not
realize that many people, including famous celebrities, have faced similar
financial difficulties and filed for bankruptcy to discharge their debts. This
article will discuss some of these famous people including artists, athletes,
authors, actors and businessmen who filed for bankruptcy.
Rembrandt
Haremenszoon Van Rijn, 1606-1669, the famous Dutch painter, accumulated more
debts than he could repay and filed for bankruptcy at the age of 50 in 1656.
Jacob Peter Thomasz, a lawyer, supervised the sale of his assets in 1657 and
1658. Many of Rembrandt's paintings and his house were sold at an auction.
After the bankruptcy, he continued to paint but was not allowed to fsell his
works directly to customers. He was able to circumvent this law by having his
son take over his business and sell his paintings.
Phineas
Taylor Barnum, 1810-1891, the greatest American showman, filed for bankruptcy
in 1871 due to losses he incurred in unwise business ventures. After bankruptcy
he organized his famous circus, "The Greatest Show On Earth." In 1881
he merged his circus with his most successful competitor, James A. Bailey,
under the name of Barnum and Bailey Circus.
Mark
Twain, (Samuel Langhorne Clemens), 1835-1910, pre-eminent American author, lost
most of his money investing in a worthless machine called the Paige Compositor,
an automatic typesetting machine. He filed for bankruptcy in 1894 and
discharged all his debts, but was determined to repay the debts. He knew he
could earn money by giving lectures to large audiences, so he traveled to
Europe and spent the next four years lecturing in every major city. He used the
proceeds from these lectures to repay all his debts. He also wrote several of
his more famous books after filing bankruptcy including Pudd'nhead Wilson andFollowing the Equator.
Mathew
Brady, 1823-1896, distinguished Civil War photographer, filed for bankruptcy in
1872 in Washington, D.C. when, after the Civil War, people lost interest in his
work and he became unable to pay his business fdebts. Three years after he
filed for bankruptcy the United Stated War Department agreed to purchase part
of his photography collection for $25,000.00. He then reopened his gallery and
was successful in attracting new clients for his work.
Henry
John Heinz, 1844-1919, condiment manufacturer, started his company in 1869
selling horseradish, pickles, sauerkraut and vinegar. In 1875 the company filed
for bankruptcy due to an unexpected bumper harvest which the company could not
keep up with and could not meet its payroll obligations. He immediately started
a new company and introduced a new condiment, tomato ketchup to the market.
This company was, and continues to be, very prosperous.
Oscar
Wilde, 1854-1900, acclaimed poet and author, was forced into bankruptcy in
1895. He had earlier been convicted of homosexual activity, which in England
was illegal at that time, and was sentenced to two years in prison at hard
labor. He was declared a bankrupt on November 12, 1895 and his property was
auctioned off. After being released from prison he published his poem, The Ballad of Reading Gaol. His
health was affected by his prison experience and he died at the age of 46.
Milton
Snavely Hershey, 1857-1945, founder of Hershey's chocolate, started four candy
companies that failed and filed bankruptcy before starting what is now
Hershey's Foods Corporation. Mr. Hershey had only a 4th grade education, but
was certain he could make a good product that the public would want to
purchase. His fifth attempt was clearly successful.
Henry
Ford, 1863-1947, automobile manufacturer, first two automobile manufacturing
companies failed. The first company filed for bankruptcy and the second ended
because of a disagreement with his business partner. In June 1903, at the age
of 40, he created a third company, the Ford Motor Company with a cash
investment of $28,000.00. By July of 1903 the bank balance had dwindled to
$223.65, but then Ford sold its first car, and as they say the rest is history.
Mickey
Rooney, 1920- , movie actor, blames alcohol and gambling for the financial
problems he suffered in the early 1960's. He owed the Internal Revenue Service
$1.75 million and filed for bankruptcy in 1962. After the bankruptcy he
continued to act and has had many roles in movies and television. He is still
performing live shows today.
Debbie
Reynolds, 1932- , movie actress, purchased a hotel in Las Vegas in 1992 and
called it the Debbie Reynolds Hotel and Casino. She thought she could operate
the hotel successfully, however, it was plagued by a weak cash flow almost from
the start. In July 1997 the hotel filed for Chapter 11 bankruptcy and Ms.
Reynolds filed for personal bankruptcy. The hotel was sold at auction in 1998
to the World Wrestling Federation.
Johnny
Unitas, 1933-2002 , legendary Hall of Fame football quarterback, was a great
athlete but a terrible businessman. Each of his business ventures, including
bowling alleys, land deals and restaurants, was unsuccessful. He filed for
Chapter 11 bankruptcy in 1991. Other football players who filed for bankruptcy
include Tony Martin and Lawrence Taylor.
Jerry
Lee Lewis, 1935- , famous Rock n' Roll star, filed for bankruptcy in 1988
because of huge tax debts. The IRS seized his cars, furniture, baby grand piano
and even showed up at his concerts to collect ticket sales. He has since
recovered from bankruptcy and still gives live concerts.
Burt
Reynolds, 1936- , movie actor, filed for bankruptcy in 1996 in Florida after
his much publicized divorce from Loni Anderson. He had more than $10 million in
debt. His dinner theater was foreclosed on by the mortgage lender and his ranch
was sold. Since his bankruptcy he has continued to act in movies and was
awarded the Golden Globe for Best Supporting Actor in the film Boogie Nights.
Sherman
Hemsley, 1938- , TV actor who played George Jefferson in All in the Family, filed for
Chapter 13 bankruptcy in June of 1999. He did not have sufficient funds to
repay a $1 million loan from a Las Vegas investment corporation and pay taxes
he owed to the IRS. He later dismissed the case and worked out his debt outside
court.
Marjorie
Margolies Mezvinsky, 1942- , former member U.S. House of Representatives from
1993 to 1995, filed for Chapter 7 bankruptcy in February 2000. She was denied a
discharge however because she failed to satisfactorily explain and disclose
what happened to all her assets.
Wayne
Newton, 1942- , Las Vegas entertainer, filed for Chapter 11 bankruptcy in 1992
listing more than $20 million in debt. A few years later he signed a new
contract with Stardust Hotel which pays him reportedly over $25 million per
year for performing at the hotel 40 weeks a year for 10 years.
Kim
Basinger, 1953- , actress, earned so much money from her movies that she was
able to purchase the town of Braselton, Georgia. After the purchase she was
sued for breach of contract for pulling out of the movie, Boxing Helena. She was not able
to pay the damages resulting from the suit and filed for bankruptcy in 1993. As
part of her bankruptcy she sold the town. She later married Alec Baldwin, had a
child and won an Oscar for her role in the movie L.A. Confidential.
MC
Hammer (Stanley Burrell) 1962- , musician and entertainer, filed for Chapter 11
bankruptcy in 1996 because he did not have the income to support his lavish
lifestyle and defend all the lawsuits that were filed against him.
Walt
Disney, 1901-1966, cartoon creator, filed for bankruptcy in 1920 after his main
client of his new business filed bankruptcy. Disney said he could no longer pay
his employees or the rent and had no choice but to file bankruptcy himself. In
1923 her formed a new company with a loan from his parents and his brother. In
1928 her created “Mickey Mouse” and the rest is history.
Larry
King, 1933- , talk show host, filed for bankruptcy in
1960 and then again in 1978. He said each time that he was deep in debt.
Donald
Trump, 1946- , businessman, filed a Chapter 11 bankruptcy
case for his casino empire in 2004 to reorganize his business after
negotiations with his creditors failed. This was the second bankruptcy case for
his casino business, in 1992 he had filed Chapter 11 bankruptcy for his casino
business.
Mike
Tyson, 1965- , professional fighter, filed a Chapter 11 case
in August of 2003 because he was not able to pay all his bills.
Sammy
Kershaw, 1958- , country music singer, filed a Chapter 13
bankruptcy case in February 2007. He had some major hits during the early
1990's, but nothing recently. He was facing financial difficulties with a
restaurant he owned.
Stephen
Andrew Baldwin, 1966-, actor, played in movies such as The Beast and Born on
the Fourth of July and was Barney Rubble in the Flintstone's Viva Rock Vegas.
In 2008, he was on TV in Donald Trump's Celebrity Apprentice. He is also a
minister and appears weekly on a Christian radio show. He filed for Chapter 11
on July 21, 2009 after he defaulted on his mortgage loan. He claims to owe more
than $2.3 million in debt.
Jose
Conseco, 1964-, baseball player, born in Cuba and moved to the U.S. as an
infant with his family. In 1988, he became the first player in major league
history to hit 42 home runs and steal 40 bases in the same year. In 2005 he
admitted to using anabolic steroids. In 2008 his house was sold at foreclosure
and he filed for Chapter 7 bankruptcy.
Vince
Neil (Wharton), 1961-, singer, He joined the band Motley Crue in 1981 and
recorded such hits as Dr. Feelgood and Girls, Girls, Girls. In 1992 he left
Motley and went solo recording Exposed, which debuted at number 13 on the
Billboard charts. In 1995 his daughter died of childhood cancer of the kidneys
ad he established the Skylar Neil Foundation in her honor. It funds cancer
research. In 1998 he filed for Chapter 7 bankruptcy, but was later not
satisfied with his bankruptcy lawyer and thought he was negligent in handling
his case. The judge refused to reopen the case. Mr. Neil has since started
several business ventures.