Sinbad blames business expenses for second bankruptcy
When celebrities file for bankrupcty – and even when ordinary folks in Atlanta file for bankruptcy – people often assume that lavish or irresponsible spending was the cause. In fact, however, this is often not the case. As we have discussed on this blog, reckless spending causes far fewer bankruptcies than unpredictable sudden expenses, such as medical costs.
The comedian Sinbad has recently filed for his second bankruptcy, and while critics suggested excessive spending was to blame, he has said that his debt stemmed from business troubles.
Sinbad filed for bankruptcy in May, at which time he said he was in an $11 million hole, with only $131,000 in assets and a $16,000 monthly income.
Sinbad has said he incurred the debt due to his business expenses, such as equipment and staff salaries. He thought that he would end up obtaining a lucrative movie role, allowing him to pay off the debt, but the role never materialized.
Many Atlanta residents have been in similar situations – having personally paid for business and entrepreneurial expenses, only to never see a return on the investment.
As Sinbad has explained to Oprah: “I didn’t buy Bentleys. I didn’t live large. I invested in me. I invested in a lot of other people.”
Unfortunately, such investments do not always pan out. Bankruptcy protection is available for those who find themselves with unmanageable debt. However, when business and personal debts are intertwined, debt protection does become very complicated. It is wise for those in such situations to seek legal counsel.
Source: Huffington Post, “Sinbad On Going Bankrupt: I Thought I Could Get Another Movie And Pay Up, ‘But That Movie Never Came’ (VIDEO),” Aug. 22, 2013