American culture makes those who are famous seem like they are “living the life” and that fame means a person is rich. But it doesn’t matter how much money a person makes – if they make poor choices, they will lose their financial stability and will have to declare bankruptcy like anyone else.
Famous People Who Have Had To Declare Bankruptcy
Here’s a list of famous people who have been impacted by bankruptcy:
Every American, even those who don’t like chocolate, know the Hershey name. But few know that Milton Hershey who eventually became one of the wealthiest entrepreneurs in the country filed for bankruptcy. Before finding success, Hershey founded four different candy companies in the cities of Philadelphia, Denver, New York, and Chicago. All four companies failed and each time, Hershey filed for bankruptcy.
It wasn’t until he returned home to Lancaster, PA that he started the Lancaster Caramel Company which became successful. Chocolate making soon followed!
Good old Willie Nelson, one of the most popular country stars of all time, has filed for bankruptcy. Nelson owed the IRS nearly $16 million in taxes and worked closely with a bankruptcy attorney in order to change his fate.
Prior to his massive success, Walt Disney filed for bankruptcy. Walt started his first company in 1920, named Laugh-O-Gram. He worked with a film distributor and in 1922, that man began to cheat Walt out of his money. This cause the business to fail and Disney to file for bankruptcy.
With support from his family, Walt was able to start his second company and a few years later, drew his first Mickey Mouse!
Henry Ford started his career as an engineer and machinist. After inventing his first vehicle, the “Quadricycle” he rushed to quit his full-time job and started a company called the Detroit Automobile Company. He didn’t do a good job of tracking his finances, however, and was forced to file for bankruptcy.
Several years later, Ford tried again, opening the Henry Ford Company. He once again struggled to obtain an interest in his product and the company failed to make a profit. Ford filed for bankruptcy a second time.
It wasn’t until Ford started the Ford Motor Company that he found success!
Yes, that’s right, one of the most famous United States Presidents filed for bankruptcy. Prior to becoming a politician, Lincoln was a storekeeper in Illinois. He and his business partner stocked their store by buying inventory on credit from other shops. Lincoln’s business partner died and the store failed to profit.
Since bankruptcy was different than it is today, Lincoln had to spend nearly 20 years repaying his debts!
Well-known financial advisor David Ramsey learned about finances the hard way – he went bankrupt. Ramsey was doing very well for himself in his 20s – he had accumulated a real estate portfolio that was worth nearly $4 million. Unfortunately, that real estate was all debt and his creditors called in his loans. Ramsey had to file for bankruptcy.
Ramsey started again from scratch but took a very different road. He counseled couples at his church, took many classes and seminars to deepen his financial knowledge, and then began to teach seminars. He then wrote a book.
Now he’s worth about $55 million!
Before becoming a household name, Cindi Lauper released an album with a band called Blue Angel. The album was not popular and Cindi filed for bankruptcy. Then she went on to release numerous albums that launched her career and made her famous!
The bottom line is that anyone can go bankrupt. It’s a very stressful time and it may feel like you’ll never bounce back. But there is always hope and with the right lifestyle changes, you can have a bright financial future.