Bankrupt Celebrities

By: Billy Baxter
Submitted: 2007-01-17 16:10:18
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Hiding behind all the glitz and glamour and what may seem like unusual celebreties are those who get bankrupt fairly frequently, though it's also the case that they come through it quite often as well.

This could quite well be the reason behind Clarissa Dickson Wright being bankrupt not once but thrice! It was said that the first time was due to the champagne bill at her mother’s funeral! The list of bankrupt celebreties is extensive and consists of celebreties from all walks of life from senators to TV stars to football players and movie stars. Often the reason for these bankruptcies is that money is aquired quickly and when the checks come in, it doesn’t seem like they will ever stop. It's like a dream and many celebreties don’t know how to deal with it and accordingly end up in excesses that they can’t afford.

Take for instance Kim Basinger who was said of all things to have bought an entire town! Kim Basinger bought the entire town of Braselton, Georgia for 20 million dollars and after being sued for a breach of contract not only had to sell Braselton but also file for bankruptcy.

While in her case it was one major expense that led to her demise, in cases of most celebreties it is a series of excesses and regular expenses that they can't afford once their good times end and the checks stop rolling in as they once did.

Mike Tyson was said for instance to need $400,000 a month to maintain his life style but after filing bankruptcy now lives on a modest rented house in Phoenix.

Although it might seem unusual the reason why many celebreties go on this spending spree is that they genuinely assume that it is never going to end. Imagine; you are making money and getting a certain amount of salary and would think that this is an end less stream of money that you will continue to generate through out life. In your case in normal circumstances it will be true because as you gain experience and advance in your career your salary will only increase.

However, think of it from the point of view of a celebrity as they also think along the same lines. They also think that their earnings will be an endless stream which will not end. Although, what they do not realize is that unlike a normal salaried person their golden period will end and what they are making at this time is probably highly skewed and can’t keep on making it for the rest of their life. This is true for actors as well as athletes. They can’t really expect a 10% raise on what they are making till the end of their life. When money comes and comes in fast, it's difficult for celebreties to think that it will ever stop. To such an extent that they even start ignoring the bad news. For instance an actress might ignore a bad review of her movie when she should probably take stock of it, see if something is wrong and then takes care of it.

The problem of bankrupt celebreties is so acute that it has sprung up an industry of its own with professionals who advise these celebreties to manage their wealth and to basically keep a check on their excesses. These financial tamers watch over the back of their clients and prevent them from buying things which can spin out of control like late comedian Rod Hull who bought an Elizabethan Mansion in 1987 for 387,000 pounds and spent another 500,000 pounds in restoring it. The house was soon repossessed as he faced massive tax arrears and was in a problem that he couldn’t quite control.

While celebreties may even add a little glitz to what is indeed a dark problem, one must keep in mind that there are lessons to be learned from them and like them we also feel the need to indulge in excesses too often. While indulgence is not bad and may even be necessary some times, be sure that you don’t end up in something that becomes disease like and more than that be careful that you don’t spend on something that requires monthly pay checks. What was probably a 20 million dollars town to Kim Basinger could well be a 100,000 dollars sports car for you!

This article has been supplied courtesy of Billy Baxter. Billy often writes and works closely with Bankruptcy. If the link is not active, you can paste this one into your browser - overcoming-bankruptcy.com/ This site is dedicated to supplying the latest news and articles on bankruptcy to assist people suffering from a looming or existing bankruptcy as well as those in the bankruptcy profession. You can also look for more extra information at Bankruptcy Attorney. If the link is not active, you can paste this one into your browser bankruptcy-aid.com/

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