Bankruptcy

Bankruptcy and Famous People

By Richard K. Gustafson

The vast majority of people I talk to about financial problems feel very guilty about their situation.  Much of the hesitation to pursue bankruptcy arises out of the belief that there is a stigma that attaches once a bankruptcy is filed.  Certainly it is true that we should not intentionally make decisions that we know or should know is going to lead us into financial trouble.  But, financial problems happen to the best of us and the fact of the matter is that once we find ourselves in trouble, bankruptcy could be the most responsible decision one could make.

Here are a few people you might have heard of that have found themselves in financial trouble.  Abraham Lincoln resulting from his ownership of a general store in 1832.  He found himself indebted to creditors and while there weren’t modern bankruptcy laws to help him out, this example shows that financial hardship can befall anyone. 

Ulysses S. Grant went bankruptcy when he was swindled by a partner in an investment banking venture.  Thomas Jefferson filed for bankruptcy several times, including once after he left office.  William McKinley filed for bankruptcy while he was serving as governor of Ohio in 1893 owing $130,000 (in 1893 that was a LOT of money!).  He won the presidency less than 3 years later.

Henry Ford’s first automobile company, Detroit Automobile Company went bankrupt in 1901 and reorganized into the Henry Ford Company later that year and when that venture didn’t succeed either, Mr. Ford left and in 1903 he founded the Ford Motor Company.  Things got better for the Detroit Automobile Company too, it changed it’s name to Cadillac Automobile Company.  Another automobile pioneer, William Crapo Durant lost his $120 million fortune during the Great Depression.  He spent his last years running a bowling alley in Flint, Michigan.

Walt Disney struggled early in his career as a filmmaker.  His first studio which he formed with a partner in Kansas City, Missouri and even signed a film distribution deal with a New York company filed bankruptcy in 1923.  Mr. Disney debuted Mickey Mouse in 1928 and you know the rest…

Burt Reynolds of Hollywood fame from the 1970’s who owned mansions on both the east and west coasts, a helicopter, and a Florida ranch filed chapter 11 bankruptcy in 1996.  He emerged from bankruptcy in 1998 even getting to keep his Florida estate, Valhalla.

These are just a few examples of famous people who used the bankruptcy laws to help them out of tough financial situations.  So, while we all wrestle with a range of emotions during financial hard times, keep focused on solutions and ways to work ourselves out of the problems.  Bankruptcy for many people is a good way to help.

Full post as published by Consumer Bankruptcy Blog from Legal Helpers on November 20, 2008 (boomark / email).