Sometimes Even Millionaires Have to File for Bankruptcy

The economy has been extremely rough on many individuals for the last few years now and, unfortunately, a recovery is nowhere in sight.  One thing that provides debt relief for many individuals is filing for bankruptcy, eliminating thousands of dollars of debt and keeping most, if not all, of your property.  With the rise in consumer bankruptcies the last few years has also come the realization, once again, that even the rich and famous get themselves into debt problems.

Remember MC Hammer?  With over $100 million dollars earned, anyone would think it impossible to run out of money, but he proved its possible.  Follow that up with a recent bankruptcy filing by future hall of fame football player, Warren Sapp who filed for bankruptcy on April 7, 2012 claiming assets of $6.45 million dollars with debt totaling over $6.7 million.

Even an ex-NFL player like Warren Sapp who earns more than $115,000.00/month can find themselves in financial woes by making poor business decisions.  Warren is not the first, and he definitely will not be the last millionaire athlete or movie star to use the bankruptcy code to eliminate debt and get a fresh start.

Now, the way Warren Sapp got himself into debt was buy making purchases of lavish homes, expensive artwork and paintings, as well as taking expensive trips all over the world.  For the vast majority of us “normal folk,” this is not how most people get themselves into dire straits where bankruptcy becomes the only way out of debt.  But, knowing that even millionaires sometimes are able to utilize the bankruptcy code to start over helps to make clear that bankruptcy can help virtually everyone who feels like they have no options.