Famous Debtors

Do you have debt problems? If so, you're not the only one! Many people have filed for bankruptcy and gone on to have very successful lives. I want to mention just some of these people, not to be a malicious gossip, but rather that my clients know they're not alone in the crowd.

Walt Disney had filed for bankruptcy in 1923. Later, of course, he went on to have great financial success. Nowadays, Disney characters invade our lives to such an extent that most people don't realize that Pinocchio, Snow White, etc., are not original Disney creations, but rather interpretations of old stories.

Other people of great intelligence and ingenuity also filed. Among these are Mark Twain, Oscar Wilde, Henry Ford and Ulysses S. Grant. Their considerable talents could not completely shield any of these people from bad luck and bad decisions.

Though he did not file for bankruptcy, Thomas Jefferson, was a chronic debtor.

One of our founding fathers, Mr. Jefferson's intelligence and renaissance talents could not save him from financial ruin. His image appears on the face of every nickel, and the beautiful mansion that he designed, Monticello, appears on the tails side. I always think about this when I have five cents in my hand. Several other politicians, such as J. Fife Symington, a Governor of Arizona, who filed while still in office, also have problems managing their money. It's interesting to note that Utah Senator Orrin Hatch is a former bankruptcy attorney. Just like me! Who would have known?

Other interesting people who have earned lots of money in the past have also met up with financial misfortune and misjudgment.

Donald Trump recently said about his daughter, Ivanka, "If she weren't my daughter, I'd be dating her myself." Mr. Trump thus reveals his questionable morals. Now, let's take a look at his questionable finances.

In 2003, his casinos lost tens of millions of dollars, and his company was $1.8 billion dollars in debt. It would seem that he's not nearly as solvent as he portrays himself to be. Though Mr. Trump has filed for bankruptcy previously, he refuses to admit that his business practices are anything but inspired.

Michael Jackson is also deeply in debt, but to my knowledge, has not yet filed for bankruptcy. His molestation lawsuits, contract disputes, as well as his penchant for high living (Neverland, surgery, sleepovers with young boys) have caused him to incur millions of dollars of debt.

Mr. Jackson portrays himself as a friend to animals, and at the height of his career was often photographed cuddling Muscles, an enormous snake, and a monkey, who I think was named Bubbles. However, Mr. Jackson has now abandoned his Neverland ranch, leaving his many animals there to face an unknown fate, and their veterinarian with a six-figure bill.

Elvis Presley, who died before he could see his daughter, Lisa Marie, grow up to marry the aforementioned Michael Jackson, also had serious debt problems. With a fleet of planes and cars, all specially emblazoned with the initials TCB (Taking Care of Business), Mr. Presley also had a huge entourage of people, most of whom were just paid to hang around Graceland and keep him company. Since his catalogue of songs dramatically increased in value after his death, his heirs, namely Lisa Marie, are now exceedingly wealthy. Let's hope they can learn from Elvis' example and not spend everything.

Willie Nelson also had a huge entourage and highly paid backup musicians. His drummer was even in the "Guiness Book of World Records" as the world's highest paid drummer. Mr. Nelson also gave millions of dollars, not to a reputable charity, but directly to fans, who claimed they needed it for funerals, prosthetic body parts, and other tragedies. It is likely that some of these people just wanted money-but Mr. Nelson never verified what the people used it for. Huge debts ensued when Mr. Nelson couldn't pay his taxes. In 1993, Mr. Nelson settled his $16.7 million delinquent tax bill.

Elton John is another star who has a terrible time managing money. While most of us would be satisfied with cheap supermarket floral arrangements, Mr. John spent $205,774 on flowers alone in less than two years. Isn't that painful to read?

Both Elton John and Willie Nelson blamed their accountants for their financial predicaments. However, the real culprits were the musicians themselves, whose lavish spending shocks even the most hardened bankruptcy attorney.

Kim Basinger filed for bankruptcy in 1993 over a contract disagreement regarding the movie "Boxing Helena." I thought this movie would have been about a female boxer named Helena. It was actually about a woman who was chopped up and put into a box No wonder Ms. Basinger didn't want to star in it!

Lorraine Bracco, Oscar-nominated actress, also filed for bankruptcy, in 1999 due to legal fees that she'd run up for a custody battle with former husband Harvey Keitel over their daughter. But 1999 also brought good fortune for Ms. Bracco-she was cast in the Sopranos, which has surely remedied her dismal financial situation.

Other parents who have incurred debt on behalf of their children include James and Lynne Spears, the parents of Britney Spears. Apparently the road to fame is expensive. That whole stage-mother business is kind of creepy ....

The list goes on endlessly. From Anna Nicole Smith to Natalie Cole, Mick Fleetwood, Debbie Reynolds, Eddie Fisher, Burt Reynolds, and Lonnie Anderson, Lorenzo Lamas, people have overspent for things they probably really didn't need.

Having a nice lifestyle is something we may all aspire to. But do you really need the latest electronic equipment? Won't it just end up in the landfill when the newest models become available? And why did Toni Braxton buy that set of gold plates that Oprah accused her of buying? Did they make the food taste any better?

Well, this is a somewhat depressing topic. If you still feel like shopping, I would like to recommend a book written by Rabbi Harold Kushner, entitled "When Everything You've Ever Wanted isn't Enough."

February 5, 2007

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