Bankruptcy

1340

English King Edward II's 14th century attempt to conquer France led to the Hundred Years' War, and the cost of this scheme put him £30 (approx. $60) in debt - about $7,000,000 in today's cash.

1656

Rembrandt Haremenszoon Van Rijn, 1606-1669, the famous Dutch painter, accumulated more debts than he could repay and filed for bankruptcy at the age of 50 in 1656. Jacob Peter Thomasz, a lawyer, supervised the sale of his assets in 1657 and 1658. Many of Rembrandt's paintings and his house were sold at an auction. After the bankruptcy, he continued to paint but was not allowed to sell his works directly to customers. He was able to circumvent this law by having his son take over his business and sell his paintings.

1790

Wolfgang Amadeus Mozart, 1756 - 1791, arguably the most famous composer of all time -- fell heavily into debt in his early 30s and when he died at age 35, was buried in an unmarked pauper's grave.

1826

Thomas Jefferson was no stranger to debt. When he left office in 1809, his wine bill alone exceeded $10,000. Add that to his 40-year project, Monticello, a lavish house that boasts 43 rooms and 13 skylights, and you'll understand why Jefferson ended up more than $107,000 in debt.

When Thomas Jefferson died in 1826, his large estate and all his possessions, including 130 slaves, were auctioned off to pay his creditors. Learn more about Thomas Jefferson Bankruptcy and the Banking Institutions.

1833

Immanuel Nobel - father of manufacturer-philanthropist Alfred Nobel, who founded the Nobel Prizes (year Alfred was born)

1856

Immanuel Nobel - father of manufacturer-philanthropist Alfred Nobel, who founded the Nobel Prizes (when Alfred was 23)

1871

Phineas Taylor Barnum, 1810-1891, the greatest American showman, filed for bankruptcy in 1871 due to losses he incurred in unwise business ventures. He even contemplated suicide at the time. After bankruptcy he organized his famous circus, "The Greatest Show On Earth." In 1881 he merged his circus with his most successful competitor, James A. Bailey, under the name of Barnum and Bailey Circus. He made over $2 million in his life time.

1872

Mathew Brady, 1823-1896, distinguished Civil War photographer, filed for bankruptcy in 1872 in Washington, D.C. when, after the Civil War, people lost interest in his work and he became unable to pay his business debts. Three years after he filed for bankruptcy the United Stated War Department agreed to purchase part of his photography collection for $25,000.00. He then reopened his gallery and was successful in attracting new clients for his work.

1875

Henry John Heinz, 1844-1919, condiment manufacturer, started his company in 1869 selling horseradish, pickles, sauerkraut and vinegar.

In 1875 the company filed for bankruptcy due to an unexpected bumper harvest which the company could not keep up with and could not meet its payroll obligations. He immediately started a new company and introduced a new condiment, tomato ketchup to the market. This company was, and continues to be, very prosperous.

Learn more about H. J. Heinz and how he went From Bankruptcy to Riches.

1879

James Abbot McNeil Whistler, 1834-1903, Whistler often had to borrow money or pawn one of his pictures to pay his debts. When a creditor came and took away a table or chair, he didn't get up said, but instead drew a picture of the item on the floor where it had been. Once a bailiff who had taken possession of Whistler's house was joshed into dressing up as a butler and serving tea to Whistler and his guests. But these antics didn't save him from being brought to court and declared bankrupt in 1879, owing $10,000.

1884

Ulysses S. Grant 1822-1885 , 18th U.S. President; Civil War general whose face is pictured on the U.S. fifty dollar bill. Late in life, he got involved in a banking house which went bankrupt. The fallout from this left him so destitute that he had to hand over all his property, including his swords and trophies. Broke and dying of cancer, he spent the last of his days writing his memoirs, to provide an income for his widow. Mark Twain published the book, generously offering Grant 70% of the profits, and 300,000 copies were sold door to door. After Grant died, his widow received $350,000 in royalties.

1888

"Wizard of Oz" author L. Frank Baum ran a store into bankruptcy in Aberdeen, SD, before he turned to writing.

1894

Mark Twain, (Samuel Langhorne Clemens), 1835-1910, pre-eminent American author, lost most of his money investing in a worthless machine called the Paige Compositor, an automatic typesetting machine, rather than Alexander Graham Bell's telephone company, to the tune of $250,000. He filed for bankruptcy in 1894 and discharged all his debts, but was determined to repay the debts. He knew he could earn money by giving lectures to large audiences, so he traveled to Europe and spent the next four years lecturing in every major city. He used the proceeds from these lectures to repay all his debts. He also wrote several of his more famous books after filing bankruptcy including Pudd'nhead Wilson and Following the Equator.

1895

Oscar Wilde, 1854-1900, acclaimed poet and author, was forced into bankruptcy in 1895. He had earlier been convicted of homosexual activity, which in England was illegal at that time, and was sentenced to two years in prison at hard labour. He was declared a bankrupt on November 12, 1895 and his property was auctioned off. After being released from prison he published his poem, The Ballad of Reading Gaol. His health was affected by his prison experience and he died at the age of 46.

18__

Henry Ford, 1863-1947, automobile manufacturer, his first two automobile manufacturing companies failed. The first company filed for bankruptcy and the second ended because of a disagreement with his business partner. In June 1903, at the age of 40, he created a third company, the Ford Motor Company with a cash investment of $28,000.00. By July of 1903 the bank balance had dwindled to $223.65, but then Ford sold its first car, and as they say the rest is history.

18__

Milton Snavely Hershey, 1857-1945, founder of Hershey's chocolate, started four candy companies that failed and filed bankruptcy before starting what is now Hershey's Foods Corporation. Mr. Hershey had only a 4th grade education, but was certain he could make a good product that the public would want to purchase. His fifth attempt was clearly successful.

1923

Walt Disney - Oscar-winning film producer; animation & theme park pioneer, Disney started the Laugh-O-Gram Corp. in 1921 with $15,000 from investors. But just two years later, he was forced to file for bankruptcy when his investors pulled out due to distribution problems. Those investors must really be kicking themselves now.

1931

Mary Nolan - actress

1934

Aleister Crowley , 1875-1947, the bisexual author and poet who claimed to practice black magic and blood sacrifice went to court with liabilities of £5,000 and was declared bankrupt.

1936

William Fox - co-founder of 20th Century Fox Film Corporation

1937

Lee de Forest - Oscar-winning film/sound synchronization pioneer; producer

1930s

Charles Goodyear 1800-1860- During the 30's it almost became a sport for creditors to take poor Goodyear to court, have him declared bankrupt, and toss him into debtor's prisons in Philadelphia, New Haven and Boston. Still, his wife's unshakable loyalty and his own pluck won him through. In between stays in jail, he discovered how to vulcanize rubber. Though when he died, he left his family $200,000 in debt.

1944

Stephin Fetchit (real name Lincoln Perry) 1902-1985- No character actor has had as many ups & downs as Stepin Fetchit. With a $7 million movie carreer, $1,000 suits, flashy cars, mansions with complete staffs of oriental servants, he had to file for bankruptcy to avoid $5 million in debts.

1951

Veronica Lake - actress

1962

Mickey Rooney, 1920-???? , movie actor, blames alcohol and gambling for the financial problems he suffered in the early 1960's. He owed the Internal Revenue Service $1.75 million and filed for bankruptcy in 1962. After the bankruptcy he continued to act and has had many roles in movies and television. He is still performing live shows today.

1963

Dorothy Dandridge - Oscar-nominated black actress-singer, who had at one time claimed 6-figure movie contracts filed for bankruptcy, claiming $5,000 in assets against $128,000 in liabilities. She blamed bad investments and an ex-husband for her predicament.

1970

Motor City Five/MC5 - rock group of the 1960s

1971

Vic Damone - singer

1972

Lionel Bart - British composer-lyricist-playwright

1972

Eddie Fisher 1928-???? - Appearing on screen as recently as 2002, this popular 50's and 60's crooner/acter was declared bankrupt in a court in San Juan, Puerto Rico with debts totalling nearly $1 million.

1973

Ray Sawyer - rock star; member of "Dr. Hook and the Medicine Show"

1975

Harry Saltzman - film producer (James Bond movies)

1976

Isaac Hayes - Oscar-winning songwriter-composer-musician-singer filed for bankruptcy on behalf of his wife and himself, listing $6 million in liabilities, including a fast-food venture called Hot Buttered Soul Ltd.

1976

Johnny Paycheck - country music star

1978

Larry King - talk-show host; best-selling American author

1979

William G. Stern 1936-????- A British property mogul, in the early 70's Stern boasted that banks competed to loan him money, and he often borrowed 80% of the purchase price. But in 1974, his fortunes crumbled in the British property market crash. In 1979, he filed for bankruptcy in what is probably the biggest personal debt in history: $208,780,496. Stern is currently paying off his debts at the rate of about $12,000 a year. This should take a little over 17,000 years.

1979

Tom Petty (rock star) - Born and raised in northern Florida, Tom Petty began playing music while he was still in high school. At the age of 17, he dropped out of school to join Mudcrutch, which also featured guitarist Mike Campbell and keyboardist Benmont Tench. Mudcrutch splintered apart shortly after relocating to L.A.. Over the next few years, Petty drifted through bands, eventually hooking back up with Campbell and Tench in 1975. At the time, the duo were working with bassist Ron Blair and drummer Stan Lynch with a band named the Heartbreakers. Petty was still under contract to Shelter, and the group assumed his deal, releasing Tom Petty and the Heartbreakers in 1976.

Initially, the band's debut was ignored in the United States, but within a few months, the band was headlining its own British tours and the album was in the U.K. Top 30. Prompted by the record's British success, Shelter pushed the album and the single "Breakdown" in the U.S., this time to a Top 40 hit and "American Girl" became an album-oriented radio staple. You're "Gonna Get It", the Heartbreakers' second album, was released in 1978 and it became the group's first American Top 40 record.

Petty and the Heartbreakers were poised to break into the big time when they ran into severe record company problems. Shelter's parent company, ABC Records, was bought by MCA Records, and Petty attempted to renegotiate his contract with the label. MCA was unwilling to meet most of his demands, and halfway through 1979, he filed for bankruptcy. Soon afterward, he settled into an agreement with MCA, signing with their subsidiary Backstreet Records. Released late in 1979, Damn the Torpedoes was his first release on Backstreet.

Tom Petty of course, went on to rock star fame, landing a 20 million dollar contract with Warner Bros, and playing with the "Traveling Wilburys", which also featured Dylan, George Harrison, Roy Orbison, and Jeff Lynne.

1983

Cyndi Lauper (rock star) - Cyndi Lauper was one of the biggest stars of the early MTV era, selling five million copies of her debut album, "She's So Unusual", as well as scoring a string of four Top Ten hits from the record, including the major hits "Girls Just Want to Have Fun" and "Time After Time".

Born June 22, 1953 in Brooklyn, New York, and raised in the neighboring borough of Queens, Lauper dropped out of high school in her late teens, choosing to sing in a number of local cover bands instead. Eventually, her voice was so strained she turned to voice lessons from Katherine Agresta, a well-known vocal teacher in New York. In 1977, Lauper began writing her own material with keyboardist John Turi. The duo formed Blue Angel that same year. Over the next few years, the group built up a solid following in New York, culminating in the release of an eponymous debut album on Polydor in 1980.

The Blue Angel record flopped and shortly afterward, Lauper filed for bankruptcy, which led to the disbandment of Blue Angel. Following the breakup of the group, Lauper sang in local clubs and restaurants. In 1983, her manager and boyfriend David Wolff managed to secure her a contract with Portrait. At the end of the year, she released her debut album, She's So Unusual... and well, the rest is history!

1983

Meat Loaf - rock star

1984

George Clinton - rock star (note: this is not the composer George S. Clinton)

1984

Mick Fleetwood - rock star; lead member of "Fleetwood Mac"

1986

Jay Black - rock star; lead member of "Jay and the Americans"

1987

Andy Gibb - rock star

1987

John Connally - former Texas governor; wounded in 1963 Kennedy assassination in Dallas

1988

Dino De Laurentis - Oscar-winning film producer

1988

Jerry Lee Lewis, 1935- , famous Rock n' Roll star, filed for bankruptcy in 1988 because of huge tax debts. The IRS seized his cars, furniture, baby grand piano and even showed up at his concerts to collect ticket sales. He has since recovered from bankruptcy and still gives live concerts.

1988

Tammy Wynette - country music star; American author

1980s

Janice-Marie Johnson - rock star/disco diva

1990

Francis Ford Coppola - Oscar-winning film writer-director-producer

1990

Willie Nelson - In November 1990, the IRS raided Willie Nelson's home in Texas and seized everything -- including his 44-acre home, gold records and his children's bronzed baby shoes. The IRS auctioned off Nelson's home and his property, though friends and fans bought most of his things and gave them back later.

1991

Eddy "the Eagle" Edwards - Great Britain's first Olympic ski jumper

1991

Johnny Unitas, 1933- , legendary Hall of Fame football quarterback, was a great athlete but a terrible businessman. Each of his business ventures, including bowling alleys, land deals and restaurants, was unsuccessful. He filed for Chapter 11 bankruptcy in 1991. Other football players who filed for bankruptcy include Tony Martin and Lawrence Taylor.

1991

Shenandoah - country music band

1992

Cathy Lee Crosby - actress; American author

1992

Wayne Newton, 1942- , Las Vegas entertainer, filed for Chapter 11 bankruptcy in 1992 listing more than $20 million in debt. A few years later he signed a new contract with Stardust Hotel which pays him reportedly over $25 million per year for performing at the hotel 40 weeks a year for 10 years.

1993

Kim Basinger, 1953- , actress, earned so much money from her movies that she was able to purchase the town of Braselton, Georgia. After the purchase she was sued for breach of contract for pulling out of the movie, Boxing Helena. She was not able to pay the damages resulting from the suit and filed for bankruptcy in 1993. As part of her bankruptcy she sold the town. She later married Alec Baldwin, had a child and won an Oscar for her role in the movie L.A. Confidential.

1993

Merle Haggard - country music star

1994

Concrete Blonde - rock group (source: LA Weekly, March 26-April 1, 1999)

1995

Burt Reynolds - Oscar-nominated actor-director

1995

Donald Trump isn't hurting too much right now, but a decade ago he was on the brink of going spectacularly bust. His personal liabilities were around $900 million. His three casinos and posh Plaza Hotel were forced into bankruptcy, he lost his yacht and the Trump Shuttle, and Ivana snagged the mansion and $14 million in the divorce.

Learn more about Donald Trump, and why he thinks that Chapter 11 Bankruptcy is a Ticket to Expansion and a Competitive Advantage.

1995

J. Fife Symington - Governor of Arizona (while still in office)

1995

Jennings Osborne - Arkansas businessman; Christmas light sponsor, including at DisneyWorld

1995

La Toya Jackson - rock star

1995

Susan Powter - exercise/fitness expert; talk-show host; best-selling American author

1995

TLC - rock group

1996

Anna Nicole Smith - model-actress; 1993 Playboy magazine "Playmate of the Year"

1996

Burt Reynolds, 1936- , movie actor, filed for bankruptcy in 1996 in Florida after his much publicized divorce from Loni Anderson. He had more than $10 million in debt. The mortgage lender foreclosed on his dinner theatre and his ranch was sold. Since his bankruptcy he has continued to act in movies and was awarded the Golden Globe for Best Supporting Actor in the film Boogie Nights.

1996

Dorothy Hamill - Olympic gold-medal ice-skater

1996

Keith Famie - Survivor II: The Australian Outback contestant; chef-restauranter; American author

1996

MC Hammer (Stanley Burrell) 1962- , musician and entertainer, filed for Chapter 11 bankruptcy in 1996 because he did not have the income to support his lavish lifestyle and defend all the lawsuits that were filed against him. Now an ordained minister, MC presided over the marriage of movie star Corey Feldman.

1997

Anita Bryant - singer; American author; 1958 Miss America 2nd runner-up

1997

Burt Prelutsky - American television writer; screenwriter

1997

Corey Haim, the star of 1987 teenage-vampire horror film "The Lost Boys," filed for bankruptcy in 1997, citing debts including nearly $104,000 to the IRS, $100,000 in state taxes and a variety of medical expenses.

1997

Debbie Reynolds, 1932- , movie actress, purchased a hotel in Las Vegas in 1992 and called it the Debbie Reynolds Hotel and Casino. She thought she could operate the hotel successfully, however, it was plagued by a weak cash flow almost from the start. In July 1997 the hotel filed for Chapter 11 bankruptcy and Ms. Reynolds filed for personal bankruptcy. The hotel was sold at auction in 1998 to the World Wrestling Federation.

1997

Mindy McCready - country music star

1997

Natalie Cole - singer (sources: People magazine, February 24, 1997 / Dateline NBC, September 29, 1996 / et al.)

1998

Lynne Spears - American author; mother of rock star Britney Spears; filed with husband James prior to Britney's stardom

1998

Toni Braxton - rock star

1999

Elizabeth Ward Gracen - actress; model; Miss America 1982

1999

Gary Coleman, star of the 1978-86 sitcom "Diff'rent Strokes," estimates that he earned $18 million from the show, but says his parents and former manager squandered the money. In an attempt to raise money in 1999, he sold some of his personal items in an online auction, including his size 4 ½ bowling shoes and some Afro picks. On Aug. 18, 1999, he filed for bankruptcy.

1999

Heidi Fleiss - Clothing line founder; American author

1999

Lorraine Bracco - Oscar-nominated actress

1999

Sherman Hemsley, 1938- , TV actor who played George Jefferson in All in the Family, filed for Chapter 13 bankruptcy in June of 1999. He did not have sufficient funds to repay a $1 million loan from a Las Vegas investment corporation and pay taxes he owed to the IRS. He later dismissed the case and worked out his debt outside court.

19__

Bowie Kuhn - former U.S. baseball commissioner

19__

Chaka Kahn - rock star

19__

Gary Kurtz - Oscar-nominated film producer (Star Wars, American Graffiti, etc.)

19__

Kacey Jones - country music star; musical humorist

19__

Lorrie Morgan - country music star; American author

2000

Ashley MacIsaac - musician-fiddler

2000

Debelah Morgan - singer-songwriter-producer

2000

Marjorie Margolies Mezvinsky, 1942- , former member U.S. House of Representatives from 1993 to 1995, filed for Chapter 7 bankruptcy in February 2000. She was denied a discharge however because she failed to satisfactorily explain and disclose what happened to all her assets.

2001

Anita Bryant - singer; American author; 1958 Miss America 2nd runner-up

2001

Clay Jordan - Survivor V: Thailand contestant; restauranter

2001

Joanne Lopes and Jorge Lopes - Big Game multistate Lotto jackpot winners in 2002 in the U.S.; won a $110.3 million jackpot, which they took as a lump sum of $58.9 million before taxes; had debts of nearly $600,000 when they filed for chapter 13 bankruptcy protection; their petition was dismissed by a judge due to their failure to appear at their hearing

2001

Stan Lee - comic book industry pioneer; co-creator of "Spider Man," "The Incredible Hulk," "The X-Men," etc.

2002

Sherman Hemsley - actor

2003

Bob Guccione - publisher and founder of Penthouse magazine

2003

Mike Tyson - boxer

2004

Don Johnson - actor-producer

2004

Donald Trump - businessman (casinos: Trump Hotels and Casino Resorts Inc.). There is no shame in bankruptcy, Trump says,"It doesn't matter - it's a modern-day thing, a legal mechanism."

Learn why Trump sees bankruptcy as nothing more than a beneficial legal mechanism. Read Donald Trump, no Shame in Bankruptcy.

2004

Juan Rodriguez - $149 million Mega Millions lotto winner, New York City (just before winning)

2004

Lorenzo Lamas - actor

2005

Michael Jackson is chained to a $200 million millstone of debt, says a California lawsuit, and he's reportedly trying to stave off bankruptcy, scraping by on a million bucks a month. Michael's meltdown started to show when his parents, Joe and Katherine, filed for bankruptcy, claiming debts of $45 million and assets of around $400,000.

The Jackson kids Tito, Jermaine, Randy and Rebbie also went bust, but Michael and his songbird sisters Janet and LaToya did nothing, saying they had no part of the family firm. Read more about Michael Jackson on the Brink of Bankruptcy.