Bankruptcy

Old Bankruptcy Stigma Dropping Off As Celebs Turn to Filing Bankruptcy

By Meaghan Olson

Bankruptcy in its simplest form is a recovery and relief task meant to heal and reprise a business or person back to a baseline stable for success.

The problem is it carries such an emblem of failure that when the term is used, most often the person does so through lowered eyes and sunken shoulders.

Bankruptcy is not the End of the Road

This is by no means is a final destination or label which should be emblazoned on one?s forehead for life.

It is a sign for redirection, and a chance to start over- or move on.

Even those we idolize have filed bankruptcy.

Just to look to a recent article in Bloomberg.com, and there in black-and-white is the news that even the bright lights of Hollywood, the loud cheers of Shea Stadium nor the brotherly love of Phillies fans can save even our stars from having to file for bankruptcy.

Celebrities and Bankruptcy: Dykstra, Baldwin, Trump

In the article, All-Star baseball great Lenny Dykstra is recorded to be filing bankruptcy under chapter 11 due to owing $10 to $50 million.

Then there is Stephen Baldwin, whose failed apprenticeship trials and inability to use his celebrity status to get him ?out of here? has led him to filing bankruptcy.

Times are tough, even for our idols and it seems as though they will not be getting easier any time soon.

This economic blunder is even affecting such major banking institutions as JP Morgan Chase.

Bloomberg?s article mentions that ?steeply rising filings by consumers are hurting commercial banks. JPMorgan Chase & Co., the second-largest U.S. bank, predicted more losses on consumer loans last month? .

In the same article JPMorgan?s CEO Jamie Dimon was resound in his thoughts of the current state of affairs.

Dimon doesn?t expect the credit card business to formulate a profit in 2009 or 2010.

In fact, the company augmented its loss projection for prime and subprime mortgages.

Not good news for those who lean on such institutions for stability in an otherwise unstable time.

Truthfully, examples of filings by celebrity figures, major business institutions and those who appear to have it all are interchangeable.

Just ask Donald Trump and M.C. Hammer.

The difference now is that more of the country is bound by these ties which otherwise were seen to connect only “the less” than rather than “the more of”.

Full post as published by The Bankruptcy Blog on August 20, 2009 (boomark / email).