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Decade in Review – Famous Bankruptcies

Filing for bankruptcy is not the end of the world. On average, over a million Americans a year file for personal bankruptcy for a wide range of reasons from credit card debt to medical emergencies. Whatever your reason, know that you are in good company. Americans from all walks of life including the wildly famous have filed for bankruptcy in the last decade. Here is a quick review of some of the most famous bankruptcy cases including: a celebrity, politician and sports figure who have filed in the last ten years. They went on to  live successful lives – you will too.

  • Curt Schilling– The former Boston Red Sox ace pitcher helped his team win the World Series in 2004. That stardom, however, did not mean he was safe from bankruptcy. He whittled away his sports fortune when his computer gaming company called 38 Studios failed. Not only did he declare bankruptcy but he owed the state of Rhode Island $75. He was, however, able to reinvent himself and began sportscasting with ESPN for a short time.
  • Donald Trump – Unless you have been completely off the grid for the past couple of years, you have heard about the famous President-elect’s bankruptcies in his business dealings.  ThePresident-elect as an entrepreneur filed for business bankruptcies that dealt in millions of dollars.President-elect viewed his business bankruptcies as a reset and a smart business move. His history of bankruptcy apparently did not hinder President-elect Trump from moving on and successfully running a presidential bid in 2016.
  • Stephen Baldwin– According to TV Guide, this Baldwin brother filed for bankruptcy in July 2009, one month after he and his wife defaulted on their mortgage and their home was foreclosed. At the time, he owed more than $2.3 million. Baldwin pleaded guilty to failing to file income taxes for 2008, 2009 and 2010 in March 2013 and agreed to pay $300,000 within a year or be sentenced to five years’ probation and have five years to pay the money.
  • Nadya Suleman – This mom of eight children, also known as “Octomom” filed for Chapter 7 in 2009, claiming that she could no longer pay her bills, had less than $50,000 in assets, and owed between $500,000 and $1 million in liabilities. But her case was thrown out when she failed to complete and file the paperwork required. This cautionary tale shows why having an experienced bankruptcy attorney is critical in successfully filing for bankruptcy.