• 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