Foreclosure and Bankruptcy Filings Common amongst Both Rich and Poor

Posted on July 21, 2009
Filed Under Foreclosure Homes | 1 Comment

The US economy is going through one of its deepest recessions. The pinch is being felt by almost everyone – even the hardworking lot who lived within their means. Foreclosures are up and rising and so are bankruptcy filings. It’s not only the middle income groups that have faced foreclosure filings and bankruptcy cases. There are cases of multi-millionaires who are crumbling under the weight of bankruptcies too. What’s interesting, some of them are even celebrity stars and athletes who have extravagant lifestyles.
The downturn has affected everyone. It has affected those who have had modest lifestyles

And also those who spent lavishly that depleted their wealth. The King of Pop, Michael Jackson is one such icon who had the lifestyle befitting a king. It is rumored that he often went on extravagant shopping sprees. True, he had not filed for bankruptcy and he would not have to even if he had lived. In fact, he could have averted bankruptcy by selling his assets. Still he had debts running into $400 million when he expired.

MJ was definitely a class apart but there are more down-to-earth examples. Recently, Major League Baseball All-Star player Lenny “Nails” Dykstra made a bankruptcy filing. His assets were worth less than $50,000 while his liabilities grew to an astounding $10 to $50 million. Nails’ problem was his excessive lifestyle. Besides a mansion, he owned a Rolls and a jet. His 12-year career did not exactly ensure him a place in the Hall of Fame.

At the other end of the spectrum is Bernie Kosar who also filed for bankruptcy protection. His assets were worth $1 to $10 million while his liabilities were to the tune of $10 to $50 million. When his business closed down he could not stay afloat despite a decent education from the University of Miami. The divorce also did not help matters.

Willie Davis, a football star also became a victim of the bad economy. The fearsome defensive took up an MBA course when his football career wound up. The sad part of the story is that he never earned above $50,000 per annum as a footballer as salaries were never that high in those years as they are now. What’s worse, the wealth he tried to accumulate has all but vanished. Being the second largest stake holder in the Culver City, California bank he lost almost $9 million. One just can’t help but feel bad for those who lived modestly and yet lost everything.

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