BK for Celebrities

[babbles]

I don't understand it and I'm sure someone  can offer some insight as to how these people can file BK with such great income!   Recent example for me is Sports Anaylst Warren Sapp has reportedly filed for BK.  So let me get this right, he will file for BK, relieve himself of mostly all debts and stress and then continue to live a great life doing what he enjoys, talking sports??  How does this work??    I sure would like to get rid of my 2 rental homes that I rent at a horrible loss and have been for quite a while.  Thanx!!

[drkaje]

Everyone should have equal protection under the law.

[llecs]

I honestly had no clue who Mr. Sapp was, but after a quick Wiki search I see why he filed for BK. Whether your income is $20,000, or $20,000,000, most of the masses always spend up to their income in acquiring stuff. He was broke at a higher level. He probably bought cars, homes, etc and blew it all. He retired a bit early and I'm sure he continued spending like he was playing in the NFL, despite millions less in income. He also fathered kids outside his marriage. Sapp signed onto the NFL Network with an income of $45,000/mo. Unfortunately due to his past histories, his child support and parental support is nearly $15k/mo. He also had a judgment against him from PNC and the judge awarded PNC $33,000 of Sapp's monthly income to pay the debts. Over 100% of his income went to these two things alone, not to mention alimony, back tax payments, other debts, etc. The day he quite football is the day he should have sold off assets, froze spending, and lived within his means.

[FrugalRican]

See: Antoine Walker

Read about him, his contracts, what he spent, why he spent. I think even ESPN did a documentary about his money issues.

Same goes for MC Hammer.

We assume that because they make millions, they are impervious to financial woes, but when your expenditures outweight your income, even at a million dollar level, you are bound to have this happen.

And we can only assume that they are "living the good life", but underneath the surface, other things could be boiling for Sapp and many like him. We probably don't even know that he's actually "making" any money talking football and that he probably NEEDS that job. All assumptions.

Mo' money, mo' problems.

[babbles]

Thank you for the kind replies.  Does his filing affect the taxpayers and all that file BK?  And how if so?   I've always heard people say it does affect taxpayers but I never took the time to understand the whole concept.