Bankruptcy

Michael Jackson ? The Poor Little Rich Man ?Gone But Not Forgotten

By writer

Rich? Poor? Bankrupt? The speculation regarding Michael Jackson?s financial status follows him even into the great beyond.

The February ?09, Forbes.com estimated Jackson?s net worth at about $350 million, although this was not his entire net worth. He also held about $650 million in real estate as well as at least $100 million worth of Beatles music rights. In addition, Jackson (or his estate) owns the rights to his own music and to the music of other entertainers, maybe worth about $150 million. His ?Thriller 25? album, released in February 2008, also added substantially to the Jackson coffers. In these early days following his death, the sale of this album, as well as other Michael Jackson biopics, will undoubtedly act as a conduit, pouring millions of additional dollars into the late entertainer?s piggy bank.

As far as the Jackson debt, it is estimated that as of about six months ago (early 2009), he was between $200 and $270 million in debt. So?with a bunch of subtracting losses from profits, the numbers leave the King of Pop with a net worth of about $1.3 billion. So he certainly was not, at the time of his death, ?broke?. Conversely, with over one billion dollars on the asset side of the ledger, why was the singer unable to pay off his debts?

The answer is simply that the $1.3 billion is not ?liquid?. That is, the Jackson estate will only be able to access those assets once they are sold. They also are likely the leverage for all of the singer?s loans. So, it looks like the answer to the quandary of the Michael Jackson bankruptcy is that Jackson was not, indeed, bankrupt at the time of his early demise.

If, unlike Michael Jackson, you find yourself with something less than $350 million of net worth, you may need to arm yourself with some practical information about the current bankruptcy laws. Depending on your specific financial situation, it may be in your best interest to file for bankruptcy protection under either Chapter 7 or Chapter 13. Contact legal helpers today to speak with a lawyer who focuses on bankruptcy today.

Full post as published by Consumer Bankruptcy Blog from Legal Helpers on July 13, 2009 (boomark / email).