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10 Celebrities who Survived Bankruptcy

Posted on 24. Jun, 2009 in General News

“Capitalism without bankruptcy is like Christianity without hell.”
Frank Borman

Here are 10 celebrities who have been to hell and survived:

1. Donald Trump

Who: Chairman and CEO of the Trump organisation, Owner of the Miss Universe Organisation, Executive Producer of The Apprentice, Founder of Trump Entertainment resorts, US Real Estate Magnate

Declared Bankruptcy in: 1991, 2005, 2009

What went wrong? Recession, Recession, Recession!

The Donald has filed for bankruptcy every time the US economy has faltered and put his companies in debt. Rather than risk personal bankruptcy, Donald Trump gave up ownership holdings of the Trump Taj Mahal and Trump Plaza Hotel (1991).

The recession in 1991 brought Trump to bankruptcy but he managed to get his debts restructured and was soon back on his financial feet. In 2005 he was forced to sign over a portion of his ownership rights over Trump hotels. The 2009 financial crisis did not leave The Donald unscathed either, and he filed for bankruptcy in February 2009.

More info: Here and here

2. Walt Disney

Who: Creator if Mickey Mouse, Co-founder of Walt Disney Productions, entrepreneur, winner of multiple Academy Awards, film producer, director, animator and philanthropist.

Declared Bankruptcy in: 1923

What went wrong? Disney lost the funding for his Laugh-O-Gram Corporation in Kansas City, Missouri when his financial backers quit. Disney declared that he was unable to pay employee salaries and all company overheads and filed for bankruptcy.

More info: Here and here

3. Zsa Zsa Gabor

Who: Former Beauty Queen, Actress and Socialite, Gabor has been married nine times and divorced seven times (one marriage was annulled). She is best known for her cameo role in A Very Brady Sequel, The Fresh Prince of Bel Air and The Beverly Hillbillies.

Declared Bankruptcy in: 1994

What went wrong? A series of unfortunate incidents, including a successful suit for libel against Gabor by actress Elke Sommer, a breach of contract case and a misguided investment in con-man Bernard Madoff’s scams resulted in financial collapse for Zsa Zsa Gabor.

More info: Here and here

4. Lenny Bruce

Who: comedian, screenplay writer and critic, Bruce was considered to be third greatest Stand-up comic of All Time. He was the man who dared to use obscenities before they became popular and is best known for his shocking performances.

Declared Bankruptcy in: 1964

What went wrong? He talked himself into it.

It was his ground-breaking brand of foul-mouthed comedy that got him into serious financial problems. Bruce was banned from most comedy clubs in America, but the straw that broke the camel’s back was the obscenity charges preferred against him.  As a result of these charges, Lenny Bruce declared bankruptcy.

More info: Here and here

5. Kim Basinger

Who: American actress, Bond girl, and former fashion model, Basinger is an Academy award winner, Golden globe winner and Screen Actors Guild award winner. She is best known for her role in Batman and 8 Mile.

Declared Bankruptcy in: 1993

What went wrong? Basinger went ahead and bought herself an entire town in Georgia at the cost of $20 million. However, when she then opted out of a film, Boxing Helena, she was then cleverly boxed in by her fellow investors and taken to court by the studio for breaching her contracts. Basinger was ordered to pay over $8 million. Since she could not meet these expenses, Basinger filed for bankruptcy, and was forced to sell the town she had bought.

More info: Here and here

6. David Crosby

Who: Brilliant musician, part of the Byrds and Crosby, Stills, Nash & Young, member of the Rock and Roll Hall of Fame

Declared Bankruptcy in: 1985

What went wrong? Crosby’s solo career failed and the musician filed for bankruptcy, and has since been compelled to sell various assets including his sailboat, the Mayan, on which he has written many of his much appreciated songs.

More info: Here, here and here

7. Mike Tyson

Who: Champion heavyweight boxer, a.k.a “Kid Dynamite,” Iron Mike”, and “The Baddest Man on the Planet” (read more)

Declared Bankruptcy in: 2003

What went wrong? To put it simply, Tyson liked to shop.

His lavish spending habits remain the primary cause for his bankruptcy. Tyson spent $300 million buying anything and everything he wanted from jewellery, huge houses, cars, clothes to even wild animals. He also made some very bad investments. After struggling with his financial affairs since 1998, The Baddest Man on the Planet finally declared bankruptcy in 2003.

More info: Here and here

8. Don Johnson

Who: Popular Star of Miami Vice and Nash Bridges, Johnson has his star on the Holly wood walk of fame

Declared Bankruptcy in: 2004

What went wrong? Johnson got into financial problems when the City National Bank of Los Angeles in 2004 sued him for monies due ($930,000). His ranch in Pitkin County, Colorado was held for auction. To save his ranch, Don Johnson decided to take the walk of shame and declared bankruptcy.

More info: Here and here

9. Larry King

Who: Talk show host extraordinaire of Larry King Live on CNN and Guinness record holder for most talk show hours. Larry King is said to have had more than 30,000 people on his shows over the years.

Declared Bankruptcy in: 1978

What went wrong? King had accrued a debt of $352,000. However, his major financial problems started when he was accused by his business partner Louis Wolfson, of having stolen money from the latter. Although the charges were dropped, King was unable to pay his debts and had to declare bankruptcy.

More info: Here and here

10. Willie Nelson

Who: Iconic American country singer, poet, actor and songwriter

Declared Bankruptcy in: 1990

What went wrong? Taxes.

Willie Nelson was forced to declare bankruptcy when he could not pay the IRS $16.7 million. All his assets were seized, including his 6 homes and bank accounts. The wily Nelson managed to recover from the financial setdown by releasing an album titles “The IRS Tapes: Who’ll Buy My Memories?”

More info: Here and here