Celebrity Bankruptcy Cases 2013 – Bankruptcy Year End Wrap Up

Posted on Jan 02, 2014 By Carla Handy

Attorney Carla M. HandySuffering financial difficulties that result in a bankruptcy filing is never pleasant.  But sometimes it’s comforting to see that we “mere mortals” are not the only ones to experience this difficult times in our lives.  The rich and famous do as well.  As reported by Radar Online here are some celebrities who have also experienced similar problems:

 

Lindsey Lohan – the troubled starlet ran into problems with the Internal Revenue Service in 2013.  The IRS claims Ms. Lohan owes $234,000.00 in unpaid taxes for 2009 and 2010.  She may even owe more back taxes for 2011.

Pamela Sue Anderson – beware of building the house of your dreams.  It could bankrupt you as it did for Ms. Anderson to the tune of $1.1 million.

Evander Holyfield – Mr. Holyfield may have lost his home in Atlanta, Georgia to foreclosure and may owe back child support for 9 children.  Chapter 13 bankruptcy may have been helpful to stop a foreclosure of Mr. Holyfield’s home and provide a repayment plan to pay back child support.  But its likely Mr. Holyfield would have exceeded the debt limit for Chapter 13 and the requirements of the Bankruptcy Code would have included paying back all child support arrears in full.

Wesley Snipes – The IRS can put you in jail!  Mr. Snipes has just completed serving 3 years for failing to pay federal taxes due and also for filing false tax returns.  When considering filing for bankruptcy relief it is very important that all tax returns be filed before a bankruptcy petition is filed.

Jose Canseco, Dionne Warwick and Lauryn Hill – These three celebrities have all run afoul of the tax authorities.  Mr. Canseco filed for bankruptcy relief in 2012 with more than $1.7 million in debt, including back taxes.  Ms. Warwick filed for bankruptcy relief in 2013, primarily for unpaid taxes.  And Ms. Hill was incarcerated in 2013 for her failure to pay taxes.

Heidi Montag and Spencer Pratt – In a further peek into the unreality of reality stars, this couple, famous for their roles in the reality series “The Hills”, reportedly blew through $10 million because they were convinced the world was going to end with the Mayan Apocalypse in December, 2012.  Looks like they will need to find a new reality gig after this.

Janice Dickinson – self titled “World’s First Supermodel” filed for Chapter 7 bankruptcy in 2013 and included substantial debt owed to her plastic surgeons.

Gary Busey – Mr. Busey filed for Chapter 7 bankruptcy relief in which he claimed less than $50,000.00 in assets.  But the asset list itself was the most interesting.  Items listed on Mr. Busey’s Schedule B of his bankruptcy petition included a broken pellet gun, 300 VHS tapes, bows and arrows and a pair of old moccasins.

Tionne “T-Boz” Watkins – T-Boz of the singing group TLC filed a second Chapter 13 bankruptcy petition in October, 2011.  This petition was dismissed by the Bankruptcy Court in February, 2012 with an order barring Ms. Watkins from filing any additional petition for 180 days.  This extreme measure was due to the fact Ms. Watkins had a previous Chapter 13 bankruptcy case dismissed in 2011 for failing to make any payments under her repayment plan and for failing to appear at her creditor’s meeting.

The information included in this blog regarding these celebrities is courtesy of the previously referenced news article in Radar Online.  While it may help to see that others are struggling with financial difficulties just as you are, it does not relieve the stress and worry that such difficulties can cause.  However, addressing the issue by meeting with a qualified bankruptcy attorney can allow you to explore all the solutions available to resolve these difficulties.  If you are considering a bankruptcy option and need assistance please contact one of our locations nearest you for a free, confidential consultation with one of our experienced, licensed attorneys.