Celebrity Bankruptcies, Who Went Broke and Declared Bankruptcy

Although bankruptcy might be your worst nightmare, it can happen to the rich and famous just as easily as anyone else. Through money mismanagement, bad business ventures, or any other number of factors, no matter how large someone’s fortune is or how famous they are, celebrity bankruptcies happen all the time.

Here are four high rollers who had to file for bankruptcy in the last five years.

1. David Cassidy

David Cassidy, who rose to fame in the 1970s due to his role in sitcom “The Partridge Family” and became a teenage idol, filed for bankruptcy in February of this year. According to the Daily Mail, he currently has over $300,000 in credit card debt, unpaid legal fees, and a mortgage taken out against his home, though court documents filed in Florida indicate over $10 million of assets and debt. Although Cassidy enjoyed success and heartthrob status in his younger years, problems with drugs and alcohol plagued his career for decades right up until last year. The Daily Mail reports that he was most recently arrested in early 2014 for a DUI.

2. Janice Dickinson

Janice Dickinson, the former supermodel who also gained notoriety for her role as a judge on the hit TV show “America’s Next Top Model,” declared bankruptcy in 2013. Fox News Magazine states that she was over $1 million in debt, a portion of which she actually owed the government and reportedly much of it due to plastic surgery procedures. Regardless of her continued success in the modeling and entertainment industry, spending too much without enough in the bank caught up with her. Dickinson has since made many good will efforts to pay back creditors and is in the process of repairing her finances. While many celebrity financial foibles are linked to other bad lifestyle habits which cause poor decisions, such as drug and alcohol abuse, it can also be a simple matter of overspending.

3. Gary Busey

Gary Busey who first achieved success in film in the 1970s and went on to earn an Academy Award nomination for his role in “The Big Bopper,” filed for bankruptcy at the end of 2012. AARP reports that, although the actor listed his assets and liability under $100,000 each, he actually owed over $451,000 in tax debt, which was what ultimately led to his downfall. His poor financial state was attributed to reckless behavior and bad choices. Tax debt is often a downfall for celebrities who don’t file their income tax properly and end up with massive amounts of money owed, forcing them into bankruptcy proceedings.

4. Betsey Johnson

Fashion designer and brand owner Betsey Johnson declared bankruptcy in 2012 after failing to pay manufacturers involved with her business, such as jewelers, as well as banks and bookkeepers, according to VH1. She was a whopping $4.1 million in debt, but has continued her career and was reported to be working on a reality TV show.

Celebrities can suffer the same fate as ordinary people when it comes to mismanaging money, only on a greater scale. Whether you have $500 or $5 million in the bank, if you squander your assets and don’t plan financially, bankruptcy could be just around the corner. However, just as many celebrities have, it’s possible to bounce back.

If you are considering if bankruptcy is right for you, contact Van Horn Law Group for your free case evaluation.