Articles Posted in Celebrity Bankruptcy

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Marvin Lee Aday is better known as the singer Meat Loaf. His 1977 album, Bat out of Hell, is one of the highest-selling of all time, a ranking it shares with such all-time classics as AC/DC’s Back in Black and Pink Floyd’s Dark Side of the Moon. Known for such classic songs as “Two out of ThreeAin’t Bad” and “Paradise by the Dashboard Light,” the album made the singer a major, if unlikely, star.

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Nelson’s tax troubles are almost as legendary as his career. After a lengthy investigation, Nelson was hit with a staggering multi-million tax bill. It was one of the largest individual federal income tax bills ever generated by the IRS at the time. The debt, which was figured to be $16.7 million together with interest and penalty, was negotiated to a mere $6 million by Nelson’s lawyer, Jay Goldberg. There was just one big problem: Nelson didn’t have the money to pay off the negotiated debt. So he didn’t.

 

On November 9, 1990, the feds raided Nelson’s home, taking everything he owned. Everything that is, except, Trigger. Trigger was Nelson’s favorite guitar which he had his daughter, Lana, take out of his home in anticipation of the raid. “As long as I got my guitar,” Willie Nelson said, “I’ll be fine.”

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The late Gary Coleman, who was once the highest-paid actor on television for his role on “Diff’rent Strokes,” declared bankruptcy in 1999. After a series of costly medical troubles and even costlier legal battles with his adoptive parents, the then 31-year-old claimed a $72,000 debt and filed for Chapter 7 bankruptcy. A decade prior, the actor reportedly boasted a $7 million fortune. But he said he could “spread the blame” for his bankruptcy “from me to accountants to my adoptive parents, to agents to lawyers and back to me again.” The 4’8” star had difficulty landing steady jobs after his “Diff’rent Strokes” days, and after ongoing medical woes, passed away in 2010 at age 42. Despite the considerable financial troubles he faced during the latter portion of his life, Coleman will always be remembered for uttering that iconic, million-dollar question: “Whatchoo talkin’ ’bout, Willis?”

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Former heavyweight champion Mike Tyson, a cash machine to himself and to others, record earnings in the boxing ring became a license to spend — on jewelry, mansions, cars, limousines, cellphones, parties, clothing, motorcycles and Siberian tigers. Despite making about $400 million over the past 20 years, Tyson managed to squander his fortune.

One of his most recent extravagances came on Dec. 22, when Tyson walked into a Las Vegas jewelry store and picked up a $173,706 gold chain lined with 80 carats in diamonds. But he never paid for the fabulous jewelry, which is among the $23 million in debts specified in the Chapter 11 petitions he filed Friday with the United States Bankruptcy Court in Manhattan.

Tyson’s free-spending past made him creditworthy at Jewelers Inc., which he departed without paying a cent for the diamonds. ”Knowing him for so long, I gave him the merchandise and knew he’d pay later,” Mordechai Yerushalmi, the store’s owner, said by telephone yesterday. ”He had open credit with me.” He added: ”He’s been through his ups and downs. He will make good on it.”

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Popstar David Van Day toured the world with bands Buck’s Fizz and Dollar and also dated a string of beautiful women. Now, the 58 year old can be found in a few old people homes in Moulton.

David’s bankruptcy was mainly because of the money he would spend on drugs. He once reportedly blew over 100 Euro on cocaine. After becoming bankrupt, he stopped using drugs and started selling fast-food in Brighton, which gave him the nickname “Burger Van Day.”

He later re-invented himself from pop to reality TV personality which was the highlight of stint in the “I’m a Celebrity jungle” in 2008.

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Donald Trump has a net worth of over $4,000,000,000, according to Forbes, but he has filed for bankruptcy four times. In the order of 1991, 1992, 2004, and 2009. However, they were all corporate bankruptcies rather than personal ones, meaning his finances have not been significantly affected.

 

Trump’s personal finances did take a toll the first time he filed for bankruptcy after he financed the construction of the Trump Taj Mahal with junk bonds and was unable to pay the high interest.

 

The result in the bankruptcy was over $900,000,000, claims Forbes magazine. Luckily for Trump, this was the only bankruptcy that personally affected him, after he reduced most of it by selling his yacht, airline, and his stake in some other businesses.

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Tom Petty declared bankruptcy in 1979 in an effort to free himself from his contract with Shelter Records.

At the time of Tom Petty’s bankruptcy filing, he had little to show financially for the two hit albums already behind him: 1976’s Tom Petty and The Heartbreakers (featuring the hit singles “Breakdown” and “American Girl”) and 1978’s You’re Gonna Get It! Unhappy with the terms of his contract with Shelter Records, Petty seized upon the sale of Shelter by ABC to industry giant MCA as justification to declare himself, in effect, a free agent.

Petty refused to allow his next album to be released, even going so far as to bear the cost of recording it personally, leaving him some $500,000 in debt. This was when he filed for bankruptcy, hoping to gain leverage in the brewing legal dispute by having the bankruptcy court declare null and void an extremely unfavorable contract that Petty felt he had signed under duress.

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In 1992, Newton filed for Chapter 11 bankruptcy to reorganize an estimated $20 million in debts, much of which was accumulated while suing NBC for libel; he claimed the network had reported that he partnered with the Mafia to buy the Aladdin. His bankruptcy declaration included a $341,000 Internal Revenue Service (IRS) tax lien.

By 1999, he was financially well off again. In August 2005, the IRS filed a lawsuit against Newton alleging that he and his wife owed more than $1.8 million in taxes and penalties.

One of Newton’s tax lawyers disputed that, saying, “We believe the IRS owes him money.”

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Suzanne never formally filed for bankruptcy, because she was “too embarrassed” to do so, she admits that at the height of her money problems, she was $200,000 in debt.

Two years after the band split up and a steady stream of money was coming in, she was forced to hand the keys to a $710,000 property back.

“At that point I had literally nothing to show for my efforts. No investments, no Isa accounts, no savings, no pension, no nothing,” she stated to The Telegraph. Shaw stated that it took her eight years to pay back every penny she owed.

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The former boyband lead singer Shane Filan was officially declared bankrupt back in 2012, after losing a wallet busting $18 million due to bad property investments.

Filan had to sell the house he designed in 2004, then worth a hefty $3.5 million and then later stated that he couldn’t even afford a $30 toy for his own son.

Just days after his band played to an 80,000 crowd for their fare-well tour, he found out that he only had around $470 dollars in his bank account. Shane reports that going from $18 million to $470 dollars was not something he was particularly proud of.