Celebrities and Bankruptcy

How Rich People File for Bankruptcy

How is it that seemingly “rich” celebrities, athletes, business leaders, and seemingly successful people are declaring bankruptcy?  What’s the deal?  If those who have money are declaring bankruptcy, what hope is there for the “average American” struggling with finances?  I often thought the problem with celebrities was overspending.  Seriously, I get it – every woman wants a real Louis Vuitton handbag.  But is it necessary to carry your poodle in a dog carrier that costs more than the average person’s mortgage? OK, so fine.  If I had the money, I would have one too.  In Las Vegas, shopping at the high-end designer shops I have actually had this thought:  If I splurged on even one handbag, I would literally have to declare bankruptcy!   So I wonder, are a high majority of the people who seem to “have it all” really just living beyond their means?  Are those Burberry sandals and new vehicles and fabulous digs legit?  Or is everyone living with the financial burdens on their shoulders?  And just how is it that famous (or not so famous) persons do earn a lot of money, but all of a sudden are declaring chapter 13?  Isn’t bankruptcy for people who DON’T have any money?

Celebrities, Politicians, Movie Stars, Famous Pop Stars, and even professional athletes find it necessary to file for chapter 7 or chapter 13 bankruptcy.  It is something that can happen to everyone, evidently anyone from any walk of life declares bankruptcy.  Financial problems caused by divorce, lawsuits, medical problems, or the economy can impact anyone’s financial situation.  Maybe famous people are “pushed” into a lifestyle that takes a lot of money to maintain.  There is quite an extensive list of notable persons who have filed personal bankruptcies.  It is evident that financial problems do not single out people in any one income bracket or profession.  A financial crisis can affect anyone at any point in our lives and careers. Americans, so it seems, regardless of appearances, are struggling to manage their financial situations.

Check out this list of celebrities who have filed for bankruptcy.