Dionne Warwick has just filed for Chapter Seven bankruptcy.
According to reports, the soul singer was forced to file due to over $1 million in tax liens dating back two decades. Warwick’s attorney, Daniel Stolz, said her financial woes originated from a “business manager who mismanaged her affairs.”
“Before she knew it, she owed a gazillion dollars in taxes,” he said. “She’s actually paid more than the face amount of the taxes, but with all of the crazy interest and penalties that they add, the number kept mushrooming – even though she paid off the amount that she owed in terms of the actual taxes.”
According to Rolling Stone, Warwick’s tax issues began in the 1990s and have constantly haunted her over the years. In 2009, she owed $2.2 million and although she stayed on top of her payments, the money was only applied to the interest and penalties of her debt —not the principle amount.
“The taxes are of an age where under the bankruptcy code, they’re dischargeable taxes,” Stolz explained. “We’ve found that we had no other resort other than to file bankruptcy so that we could get this off her back finally.”
Dionne Warwick is not the only celebrity to file bankruptcy. Let’s take a look at 8 other celebs who have requested a fresh financial start.
“Unbreak My Heart” singer Toni Braxton has filed for bankruptcy twice in past 15 years, first in 1998 and again in 2010. She’s cited bad recording contracts and health issues as the reasons for her financial woes.
Marvin Gaye’s bankruptcy came after a marriage gone wrong. In 1976, the royalties for his album Here, My Dear were promised to his ex-wife Anna Gordy as a substitute for alimony.
La Toya Jackson
La Toya Jackson once had dreams of a big singing career. However instead of making millions, the pursuit of her career cost her than she’d bargained for. She was forced to file bankruptcy in 1995.
Child star Gary Coleman filed for bankruptcy in 1999. He cited mismanagement and medical expenses as the reason for his money troubles.
The ladies of TLC experienced the perfect example of management gone wrong. Even after selling more than 10 million records, the trio was forced to file for Chapter 11 in 1995 due a series of bad business deals.
Boxing champion Mike Tyson made more than $300 million during the height of his career. However, after accumulating more the $27 million in debt, he filed for bankruptcy in 2003.
After a series of contract disputes, hip-hop group Run DMC filed for bankruptcy in August of 1993.
Natalie Cole was surprised to learn that majority of her earnings during the 1990s went to her late father Nat King Cole’s estate. The eight-time Grammy Award-winning singer was forced to file bankruptcy in 1997.
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Continue reading Dionne Warwick Files For Bankruptcy, Plus 8 Other Celebs Who Did The Same