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Posts Tagged ‘Life After Bankruptcy’

Celebrity Bankruptcies: How Fallen Stars Rise Again

Tuesday, March 29th, 2011

Celebrity Bankruptcies

It’s quite amazing to look back in history and see the wide variety of famous individuals that have declared bankruptcy. Although they may be rockstars, actors, or athletes, they have had financial hard times just like the rest of us. After a few too many nights of partying, overspending, bad investments, or one bad business decision, they were prompted to pull the BK card.

To start, MC Hammer’s famous song “You Can’t Touch This” was exactly what he was singing towards his creditors. In 1996 he filed for bankruptcy after reportedly spending $500,000 a month on his entourage and was in debt $13 million. One of his debts was to an interior decorator for $110,000! Along with the interior decorator, he owed an attorney over $500,000. It sounds like MC Hammer’s spending habits might have been even bigger than his hit songs.

While we’re talking about major music types, Cyndi Lauper has to be mentioned. Cyndi wasn’t always just having fun in the 80’s. “Time after time” in her early years she couldn’t pay her bills. Before her hit album she was in another band, Blue Angel, which broke up due to managerial issues. In 1980 Cyndi filed for bankruptcy and picked up a job in retail to just get by. Now you know Cyndi’s “true colors,” she may have landed at the top of the music charts, but not always the financial ones!

Along with the individuals who pushed us to blast our stereos, we have quite a few actors earning their stars in bankruptcy. While we were watching them for entertainment, creditors were watching them for their debts. Burt Reynolds had many “boogie nights” with his lavish lifestyle. He had a helicopter, two mansions, and a ranch. His life was extraordinary. Too bad he had to receive his “burn notice.” He received a pricey divorce settlement from his wife. This, along with a series of bad movie choices, led Burt to declare bankruptcy in 1996. He filed a Chapter 11, reorganizing his $10 million debt, and was allowed to keep his mansion in Florida. Hopefully Mr. Reynolds continues to make smart movie choices and stays away from those wild but beautiful women.

Speaking of beautiful women, Kim Basinger has always melted us with her dazzling beauty. Too bad her career choices aren’t as impressive as her looks. The blonde bombshell decided to back out of the movie “Boxing Helena,” leaving her with a law suit. Along with the poor movie decision, she decided to buy a small town in Georgia with the plans of turning it into a mini Hollywood. When the bills flooded in, Kim was drowning in money problems. The beauty didn’t plan for the financial difficulties that the town renovation brought.  She filed for bankruptcy in the early 1990’s. Kim may fail at entrepreneurial decisions, but she never fails at looking good!

We couldn’t mention the topic of entrepreneurial decisions and not mention Donald Trump. Trump, a man known universally for his business ventures, tv show, and interesting hair style, is one of the most successful entrepreneurs of all time. He has made some brilliant real estate moves, allowing him to build his empire. Unfortunately, not all of his moves are equally beneficial. In an attempt to expand, he entered into the area of casinos. This has not produced the outcome he was hoping for. Donald filed for bankruptcy in 1992, again in 2004, and then again in 2009. That’s three times in less than twenty years that he has declared bankruptcy, yet he is still an entrepreneur idol.  Trump has used this financial tool to help him maintain his empire and venture into new areas without great liability. Too bad filing bankruptcy couldn’t fix both his financial situation and his hair.

Well, we’ve discussed some singers, actors, and entrepreneurs, but what about athletes? Do those tough guys go through financial hard times too? Sure do! Those powerful muscles don’t protect them from hits of debt. Mike Tyson, to name one, had a lucrative career of $30 million. He reportedly made millions per fight. Sadly, his spending habits were as big as his ear biting incident. Tyson’s $400,000 in monthly expenses, including a pair of exotic tigers, earned him an outstanding $27 million in debt. Both he and his company, Mike Tyson Enterprises, filed for bankruptcy in 2003. Looks like Tyson’s bankruptcy helped him bite off a lot of debt.

As we hoped you have learned from this article, bankruptcy is shared by a wide variety of people. It is nothing to be ashamed or afraid of. In fact, as you can see, it is even a beneficial tool for those who want a fresh start. The figures we named above were confronted with the same challenge that we are all faced with, finances. Luckily, they chose the right path and solved their problems. This brilliant choice to get a fresh start is why they can remain stars in our eyes.

Is There Credit After Bankruptcy?

Saturday, February 19th, 2011

The simple answer is yes. More importantly, your financial health after bankruptcy can be better than ever! If you have been shying away from bankruptcy, thinking that it would permanently destroy your credit, think again. Making late payments and missing payments will adversely affect your credit rating, pulling you into a downward spiral. All that does is extend the pain and suffering. By eliminating your toxic debt through bankruptcy, you are able to immediately begin a process of reestablishing and improving your credit. Some of our clients have seen their FICO score rise well above 700 in only two years. Since you won’t be able to have your debt discharged again for at least 8 years, you become a very good credit risk and will begin receiving credit card offers only days after your discharge.

Doan Law Firm understands your concerns and your need to get back on track rebuilding your financial health.  Our team can help you get there.

Declaring bankruptcy is often the first step and best way to begin rebuilding your credit score and improving your financial health. Your lowest score will be the day you decide to file. Your financial rehabilitation program begins the moment you file with the U.S. Bankruptcy Court.

Ask Doan Law Firm: How Will Bankruptcy Affect My Credit?

Wednesday, December 15th, 2010

For the bulk of people contemplating bankruptcy, their credit has already been severely damaged.  Each creditor reporting negatively every month takes a heavy toll on a credit score.  For clients whose credit score is still standing, they’ve been engaging in expensive juggling that takes a personal toll.

Bankruptcy stops the constant negative reporting so the positive ones can take an effect.  So while it has a dramatic effect, it allows credit to recover.

Once your bankruptcy is discharged, you will immediately be offered low balance secured credit cards.  Using those cards will begin to rack up positive points on your credit.  Also helpful are payments on any house or car you keep through bankruptcy.

After bankruptcy your credit will recover and build much more quickly than when you were just starting out.  FHA regulations permit lending two years after a bankruptcy.  With very little effort, your credit will recover quickly.

“What the caterpillar calls the end of the world, the master calls a butterfly.” ~Richard Bach

Friday, July 2nd, 2010

Although we can’t know for sure, it’s a safe bet that the process of metamorphosis is scary for a caterpillar.  One day he is happily crawling through tree branches chomping on leaves as he goes and the next he’s ensconced in a dark confining cocoon feeling sleepy.  Of course we humans know the end of the story and it’s a happy one.  A short time later that same caterpillar will be soaring through the sky, alighting on flowers and sipping sweet nectar.

Caterpillars are not alone; a financial metamorphosis can feel just as scary to humans.  We understand that crawling on your belly and eating leaves simply can’t be a sustainable condition; and, that you may find visualizing yourself soaring through the air difficult at this point.  At Doan Law Firm, Orange County Bankruptcy lawyers can help you see the future clearly, allowing you to move toward it with confidence…spreading your wings and sipping sweet nectar all the way.

Bankruptcy: A Financial Do-Over

Tuesday, June 22nd, 2010

I sit across from a lot of people that never expected to be in my Orange County bankruptcy lawyer office discussing financial hardship.  The great majority of my clients enjoyed gold star credit and stellar earning power not very long ago.  The downward slide of the economy has affected every segment of society.  Crippling credit card debt, upside down home mortgages and wage garnishments are commonplace and affect even the previously immune.

Bankruptcy is a financial do-over.  Professional tennis players get 2 chances to make the serve.  There are 3 strikes before a batter is out and cries of “do-ver” permeate every playground from handball to hopscotch.  There’s no shame in hitting the reset button and starting again.  In fact, it’s often the wisest thing you can do and the only way to really move forward.   In the do-over you have all the collected wisdom of the first go-round at your disposal and that’s exactly the design of bankruptcy.

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