Los Angeles is the city of fame and fortune. Whether it’s movies, sports, or music, Los Angeles has it all. Sometimes, though, the rich and famous hit low points too. Our Los Angeles Bankruptcy Attorneys have compiled a list of some of the biggest celebrity bankruptcies. There were so many, in fact, that we’re breaking this post up into three parts.
Here’s a list of 15 famous celebrity bankruptcies
Gary Busey is an academy-award nominated actor who has appeared in over 75 films. His notable films include The Buddy Holly Story, Lethal Weapon, Point Break, and Fear and Loathing in Las Vegas, among others. Busey filed a personal Chapter 7 bankruptcy in 2012. He included only $26,225.00 in assets and only $1,200.00 in his bank accounts at the time. Like many bankrupt celebrities, his biggest creditor was the IRS, owing almost $450,000.00. Of that tax debt, he was able to discharge about $380,000.00.
Randy Quaid is an Emmy nominated TV and film actor who is known for his roles on Saturday Night Live, Caddyshack II, Independence Day, and , among others. Quaid filed bankruptcy in 2000 with his primary creditors being the IRS ($500,000.00) and debts arising out of a disputed film production. His case eventually ended with a discharge but it took 5 years and was contested by his bankruptcy Trustee Richard Marshack due to alleged non-disclosure of assets.
Warren Sapp was a pro-bowl Defensive Tackle during his NFL Career and is now a popular Football commentator on the NFL Network. Despite earnings of over $75 million dollars during his NFL Career, in 2012 Sapp filed for Chapter 7 bankruptcy. His case was prompted by failed real estate ventures, and significant child support obligations that cost him $75,495 per month! In total, he listed over $6.7 million dollars in debt. Sapp had assets sold to repay creditors, including his 50,000 square foot home, but he emerged in much better shape.
Burt Reynolds is one of the most prolific actors in Hollywood History. He’s an Academy Award nominee and Emmy winner whose notable films include The Longest Yard, Deliverance, Boogie Nights, Cannonball Run, and Dukes of Hazzard. He filed bankruptcy in 1996 listing more than $10 million in debt. His case was prompted by poor business investments, including failed film ventures.
Kim Basinger is an Oscar-winning actress whose famous films include 8 Mile, L.A. Confidential, Cool World, and Batman. In the early 1990s her careeer was going strong, but that wasn’t enough to avoid a Chapter 11 bankrutpcy filing. Her Chapter 11 case was eventually converted to one under Chapter 7 and she receieved a discharge. Her bankruptcy was prompted by an $8.5 million judgment against her by a movie studio over a contract dispute arising from Boxing Helena, which she backed out of. Basinger infamously purchased the town of Braselton, George for $20 million in 1989 but was forced to sell it in 1995 after her bankruptcy filing.
That’s the end of part one in our three part celebrity bankruptcy series. In the meantime if you have any questions for our experienced Los Angeles bankruptcy attorneys, don’t hesitate to contact us.