Famous Bankruptcies: Mike Tyson

A former heavyweight champion who amassed roughly $400 million over two decades and could once command $30 million for a night’s work, Mike Tyson ultimately had to file bankruptcy in 2003. The New York Times reported in August of that year that Tyson had $23 million in debts specified in Chapter 11 petitions he filed with the United States Bankruptcy Court in Manhattan. In 2004 though, the Associated Press reported that Tyson owed $38.4 million to various creditors including the Internal Revenue Service and his ex-wife, Monica.

As the Times put it, Tyson’s “record earnings in the boxing ring became a license to spend — on jewelry, mansions, cars, limousines, cellphones, parties, clothing, motorcycles and Siberian tigers.” For example, the Times reported in that article that Tyson had “picked up a $173,706 gold chain lined with 80 carats in diamonds” from a Las Vegas jewelry store, but never paid for the item.

While it is highly unlikely that your own lifetime earnings or spending on extravagances are anywhere near as astronomical as Tyson’s, perhaps you can still relate in the sense that an increase in salary led you to spend more than you should have. Many people spent beyond their means when times were good and then found themselves unable to pay the bills when they became unemployed or took a new job that pays significantly less than what they had been earning.

However, just like Tyson, filing bankruptcy can allow you to manage your debt if you are struggling to pay your bills or seeking foreclosure help . A Chapter 7 or Chapter 13 bankruptcy could allow you to reorganize or eliminate you debt, as well as deliver a knockout punch to creditor harassment.

Benjamin Brand Services – Chicago bankruptcy lawyer

A Scottie Pippen Did File For Bankruptcy-Just Not The One Who Played For The Bulls

Scottie Pippen is regarded as one the of the greatest defenders in the history of the National Basketball Association, but now the six-time NBA Champion is seeking to defend himself from reports that he filed bankruptcy. Pippen filed a lawsuit in Illinois against multiple media outlets seeking $1 million in damages from each of the 10 defendants named. The former Chicago Bull claims he has not been worth less than $40 million in the past 10 years.

“It is a most foul libel indeed to be falsely accused of being bankrupt,” the lawsuit states. “Scottie never filed bankruptcy and indeed has a substantial net worth.”

The Hall of Famer’s nickname of “No Tippin’ Pippen” for his reputation of being stingy with those in the service industry would lead one to believe that he was far more conservative with his money. While some bad investments certainly hurt him financially, the Miami New Times reported on December 14, 2011, that the “only Scottie Pippen in the United States who’s filed for bankruptcy is one Scottie Lee Pippen of Overland Park, Kansas, who filed for bankruptcy in 2005.” The Times said that a CNBC slideshow entitled “15 Athletes Gone Bankrupt” led the way for multiple outlets to run similar lists that included the former Bulls player.

In other words, this blog post is not part of the recent series of “Famous Bankruptcies” on this blog. We will have to see if the more famous Pippen is able to clear his good name, but could you be confused with a famous person? Have you or somebody you know filed Chapter 7 or Chapter 13 bankruptcy and has the same name of a celebrity?

Benjamin Brand Services – Chicago bankruptcy lawyer

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