All Articles Tagged "bankruptcy"
As soon as we saw this story, we remembered the shock we felt that Dionne Warwick was in such terrible financial straits. Now it looks like she may be off the hook on a huge tax bill.
To bring you up to speed, Dionne Warwick filed for bankruptcy last year, claiming she had $1,000 in the bank, about $25,000 in assets including a two-year- old computer and has an income of $10 per month. Moreover, she owed Uncle Sam millions.
Now a bankruptcy trustee has recommended that the government excuse the $10.7 million-plus that she owes, debt that goes back to 1991. The trustee also recommends that she be allowed to keep all of her stuff, which includes a couple of fur coats, two sets of diamond earrings and $1,500 worth of furniture and the aforementioned computer. The decision will come soon.
Does this sound fair to you?
Originally posted March 27, 2013
Poor Dionne Warwick! The iconic singer had to file for Chapter 7 bankruptcy late last week because of tax liens that go back 20 years. According to her attorney Daniel Stolz, who spoke with Rolling Stone, Warwick actually has been paying taxes, but fell victim to a bad business manager and the penalties and fees that come along with mismanagement.
Warwick’s tax problems began sometime around 1998 and by 2009, it was being reported that she owed $2.2 million. The IRS corrected the record to $1 million. Despite her continued payments, it wasn’t enough to pay for the fees that were accruing. This bankruptcy filing is an attempt to clear off the debt once and for all.
Rolling Stone says that her income has fallen and, according to the bankruptcy petition, when you take her expenses into account, Warwick is making $10 per month. An internationally-known singer with decades of celebrity and hit songs under her belt is making a net income of $10 per month at the age of 72. The magazine says this is “a figure that is not unusual for a celebrity after living costs and mortgages are factored in.”
Are you shocked by any of this? Because you could knock me over with a feather right now.
Update: The New York Daily News provides more financial information, which only makes the picture look worse. Besides living on a net income of $10 per month, the newspaper says she only has $1,000 in her bank account and $25,500 in assets including a two-year-old computer. And, according to the bankruptcy filing, she’s in debt to the tune of $10.7 million. Most of that ($10.2 million) is owed to the IRS, but there’s also $20,000 in credit card debt. Yikes. We wish her the best.
The first couple of months of 2014 have not been great for some companies. In fact, some have been struggling for quite some time — whether because of a changing market or diminished demand for their goods and services — and we seem to to be just waiting for the other shoe to drop. Unfortunately the downside to business is that there is no guarantee of success or longevity. As some things in life must come to an end here’s a look at some stores that might close up shop.
Six months after having her debts cleared, Toni Braxton is getting right back in to the swing of things. According to TMZ, the “Braxton Family Values” star recently purchased a lavish Calabasas mansion for $3 million. The swanky 5, 323 sq. ft. pad reportedly has four bedrooms, five bathrooms and is located in Calabasas’ exclusive gated community The Oaks. Her new neighbors reportedly include Kourtney Kardashian, Scott Disick and Justin Beiber.
If you recall, the “Un-Break My Heart” singer filed for bankruptcy for the second time back in 2010, claiming that she was nearly $50,000,000 in debt. After paying back a small fraction of the amount owed, Toni’s debts were cleared a few months ago.
We’re glad that Toni found a way to make a financial turn-around. Apparently those “Braxton Family Values” checks came in handy. On top of that, she’s gearing up to release her duet album with Kenneth “Babyface” Edmonds, “Love, Marriage & Divorce,” in February, as well as her forthcoming memoir, “Un-Break My Heart,” in the Spring. We see you, Toni! Get that money, honey!
Judge Steven W. Rhodes handed down a ruling today that many of us have expected for some time: he declared the city of Detroit insolvent, saying it needs help to get back on its feet. However, the ruling sets the stage for cuts to things like pensions.
With the judge’s ruling, the city can start the process of reorganizing its debt and restoring basic city services, like ambulances and regular trash pick up, which have been lacking for quite some time. Since the city filed for bankruptcy in July, it has been picking and choosing which of its many creditors to pay, with many fearing they’ll never see the money they’re owed. The hope is that the city will come out of bankruptcy next year. Detroit, home to the American auto industry, is currently in debt to the tune of $18 billion. This is the largest municipal bankruptcy in US history.
“The court finds that Detroit was and is insolvent,” Judge Rhodes said this morning.
Appeals of the ruling are expected; pension groups and others who are owed money maintain that the city government didn’t make any real effort to negotiate with them, throwing into question the need for “good faith” compromising. Judge Rhodes agreed, but also ruled that the city could enact pension cuts. That doesn’t mean they’ll be included in the final reorganization. That plan will be submitted in the next few weeks.
Could there be doubt that Detroit is broke?
A judge is exploring that question in a unique trial that will determine whether Detroit indeed is eligible to erase its debts in the largest public bankruptcy in American history. Unions and pension funds are arguing the city failed to negotiate in good faith before filing for Chapter 9 protection in July, reports NBC.
The judge must determine is the city is eligible for a financial makeover if key steps have been met. This includes good-faith talks with creditors. “It’s a critical decision: If Detroit clears the hurdle, the case would quickly turn to how to solve at least $18 billion in debt and get city government out of intensive care,” reports the network.
Detroit’s bankruptcy case goes to trial Wednesday.
“It’s a crucial point in the case,” said lawyer Chuck Tatelbaum, a bankruptcy expert in Fort Lauderdale, Fla. “There will be others, but this is the go or no-go. … If there was ever a poster child for what Congress decided when they enacted Chapter 9, it’s for a city like this.”
The city’s unions and pension funds are challenging Detroit on the eligibility question. They say emergency manager Kevyn Orr was not sincerely interested in negotiating when they met with his team in June and July. But Orr says pension funds are short $3.5 billion and health coverage also needs to be overhauled.
The unions say there is evidence that will prove Orr “planned to file bankruptcy long before the purported negotiations had run their course, confirming that the ‘negotiations’ were no more than a check-the-box exercise on the way to the courthouse,” Babette Ceccotti, an attorney for the United Auto Workers, said in a court filing.
According to Earle Erman, attorney for Detroit’s public safety unions, the city has slashed wages and changed health care benefits without across-the-table talks. And Sharon Levine, a lawyer representing AFSCME, said the city spent months “mapping out its path to Chapter 9,” not looking for compromises that could keep Detroit out of bankruptcy.
Attorneys for the city, however, said a June 14 meeting and subsequent sessions with creditors were well-intended but fruitless. But they do admit, a bankruptcy filing was being prepared, they acknowledged, but “never set in stone.”
Jim Spiotto, a bankruptcy expert, noted that Judge Steven Rhodes will have much discretion to determine whether the city has met its “good-faith” burden, which only means that he provided the “opportunity” for negotiations.
The trial is expected to last several days. There will be testimony from Orr, Police Chief James Craig, financial consultants and, possibly, the governor, all in the hopes of digging into the bad financial decisions that caused this economic mess and a population decline from 1.8 million to 700,000.
“The city’s restructuring must provide a foundation for the city to begin to provide basic, essential services to its residents in a reliable fashion,” Orr said in July when he took Detroit into bankruptcy. “Without this, the city’s death spiral … will continue.”
Think Like A Man Too actor Terrence J recently stopped by Power 105.1′s The Breakfast Club to promote the release of his new book, The Wealth of My Mother’s Wisdom and his latest film, Baggage Claim. The 31-year-old New York native also opened up about overcoming major financial struggles and his split from former Victoria’s Secret Angel Selita EBanks. Peep some interesting highlight from his interview below.
On almost going bankrupt:
“There was a time when I was at 106 where I almost went bankrupt trying to keep up with other people. You know, you got all of these rappers coming on the show, you gotta keep up with them. You get your first AMEX, you blow through that money. There was a point where I lost everything. Then I get got diagnosed with vitiligo. I was scared about my health and everything. My skin started breaking out and I was just depressed.”
On his work ethic compared to former BET and 106 hosts:
“Giving 99% is the same as giving 0%. If you gon’ give 99%, you may as well stay home. I’m always like 110% in everything I do. You see the things that people do. I’ve seen the paths and I always wanted to excel. I knew I always wanted to do film. I never wanted to feel like I couldn’t pay my rent. When I first started at BET, I did not know how I was going to pay my college tuition. I was sleeping on the couch. I never wanted to feel broke. That’s why I hustle all of these jobs. It’s out of like, desperation. Sometimes I wake up in the middle of the night like, ‘Oh! Someone else is working and I’m not! Let me get back to the grind.’
On his split from Selita Ebanks:
“I think Selita is amazing. Sometimes things just don’t work. She’s a very busy woman. I work as well. I just think she’s amazing and I wish her the best.”
On being a bad host during his early years at BET:
“I didn’t think I was gon’ make it. I didn’t think was gon’ last. I’m just glad they stuck with me. I know for the first 2, 3 years I was terrible. So I’m just happy the network stayed with me. Things at E! are going really well.”
It’s inspiring to see that Terrence was able to roll with the punches and continued to chase his dreams, even while when he was faced with adversity.
Watch his full interview on the next page.
The Philadelphia Eagles didn’t have such a great weekend, suffering a 33-30 loss to the San Diego Chargers. But Michael Vick, the Eagles quarterback, had two touchdowns and threw a career-topping career-best 428 yards. So he had a great game. In fact, he’s actually on the comeback trail. His reputation was much maligned when he was convicted of animal abuse and illegal dog fighting. But Michael Vick is living up to his word to pay back the $20 million in debts he owes to dozens of creditors to complete the arrangements of his bankruptcy case, reports the Virginian-Pilot (h/t EURWeb).
Before going to prison on dog fighting charges, the Vick agreed to repay the $20 million to his creditors after filing Chapter 11 bankruptcy.
He has been working overtime to regain his place in the NFL and public eye after his release from prison four years ago. Prior to his conviction, Vick played for the Atlanta Falcons for six seasons. In 2011 The Associated Press and Sporting News named him the NFL Comeback Player of the Year.
“It was a problem life dealt me,” Vick told the Pilot about having to file Chapter 11 bankruptcy before serving his prison term. “The most important thing to me was just to get myself back to doing what I love to do: play football. I was blessed to be able to come out of prison and get my body back in shape to play.”
Actually Vick’s bankruptcy case is still pending in U.S. Bankruptcy Court in Norfolk, Va, says the Virginian-Pilot, it should be settled in coming months.
When Vick restructured his contract with the Eagles, he lost millions. However, he’ll still make a minimum of $7 million as a starting quarterback and has another endorsement deal with Nike as well as a other companies.
Vick told the Pilot that he felt obligated to repay his debts. “It was one of my goals.”
Making the decision to file for bankruptcy can be both a tough and devastating decision. Not only will it remain on your credit report for 7-to-10 years (depending on the type of bankruptcy you file), but can also place a scarlet letter on your chest, making loans and purchases more difficult to obtain.
And bankruptcy does not just affect us common folk. There have been many celebs who have had to file themselves (just ask Toni Braxton). So what’s a person to do once they have undergone the necessary actions to become bankrupt? Though it may seem like your life is over, there are some steps you can take to pick yourself up.
It’s like the money woes are never-ending for our girl Toni Braxton. Not even one month ago, we happily reported that the pint-sized beauty was finally in the clear of her long-lived bankruptcy debt, after paying $150,000 to her debtors. But unfortunately, the drama continues to linger on. According to TMZ, back when Toni reached an settlement in her bankruptcy case, she agreed to put up the rights to 27 songs from her music catalog as collateral. Part of the agreement was that she could buy the rights back for $20K, the other part was that she could be outbid.
While no one was watching, a man by the name of Ross M. Klein, swooped down and purchased the tunes for double the price of Toni’s $20K offer. Titles in Klein’s acquired collection include “You’re Making Me High,” “How Many Ways” and “Always.” We hear that “Un-break My Heart” is not among the songs acquired by Klein, so hopefully she held back and didn’t give up all of her major hits.
Although it’s really a messed up to think that someone is now reaping the benefits of Toni’s years and years of hard work, there’s not really much that can be said since Klein reportedly purchased the tunes fair and square at an auction. The good news is that not only is six-time Grammy Award-winning singer working on a new album, she’s also going on tour! Hopefully she can save up enough cash to buy back the rights to those 27 songs. Well, if Klein is interested in selling them back, that is.
What do you think of Toni losing the rights to her music?
Follow Jazmine on Twitter @jazminedenise.
The troubling news of Detroit’s bankruptcy has rocked the city and the nation. But high school senior DeQuan O’Neal says bankruptcy means a chance for the city to start over. “Going into the next generation with all that debt would mean it would be hard for me to raise a family.” O’Neal has long been active in his community, making news at age 16 when he led an organization that worked to end gun violence.
For more from DeQuan O’Neal, click through to our sister site, MommyNoire.