People at all socio-economic levels struggle, and there is ample evidence to show that it is not only “regular” people who encounter financial difficulties — such as unexpected medical bills, job loss, home repairs, a business venture gone bad and so forth — that ultimately bring them to a Chapter 7 bankruptcy filing or a consultation with an experienced bankruptcy attorney.
A news story occasionally emerges that chronicles the financial fall of a well-known person who most readers might have reasonably thought was financially indestructible — in other words, virtually exempt from the need to reach out for the assistance and fresh start provided by bankruptcy.
In such a case, and especially when celebrity status is involved, the news is often of far more than the pure entertainment value it provides for some people in Florida and elsewhere across the country. Indeed, it can often be educational and instructive for many people, even leading them to consider and act purposefully upon their own pressing financial problems.
Dionne Warwick is a prime example of that. Warwick, one of the most famous and best-selling recording artists of all time, surprised many people earlier this week when she filed for bankruptcy in her home state of New Jersey. Warwick, who has unquestionably made many millions of dollars during her lengthy and storied career, reportedly has total assets currently of about $25,500, with corresponding liabilities that exceed nearly $11 million.
Warwick’s agent attributes that disparity to many years of what he termed “negligent and gross financial mismanagement.”
Although Warwick has reportedly paid the more than $10 million she owed the IRS and the state of California in back taxes, her publicist say s that her inability to deal with escalating penalties forced her bankruptcy filing.
Sometimes bankruptcy allows for an outcome that best promotes the interests of an individual or family. A proven bankruptcy attorney can answer questions regarding the process and avenue for getting back on the road to financial health.
Source: Reuters, “Singer Dionne Warwick files for bankruptcy,” March 26, 2013