Popular celebrities are not immune to financial troubles and difficulties. Even a Grammy-winning singer from one of the country’s greatest musical families can suffer the blows of bad money decisions made on their own or by financial advisers hired to manage wealth and royalties.

Fortunately, there are bankruptcy laws that protect people with financial challenges allowing for a fresh start.

Such is the case of Ms. Dionne Warwick whose hits like the 80’s ballad “That’s What Friends Are For,” is well known and loved throughout the country. Despite having one of the most soulful voices during her heyday that earned her millions of dollars, the embattled singer filed for Chapter 7 bankruptcy protection in the state of New Jersey recently.

Ms. Warwick listed total assets of $25,500 and total liabilities of more than $10.7 million with nearly all being tax claims from California. Her monthly expenses exceed her total income. This is all attributed to financial mismanagement.

Representatives for Ms. Warwick told sources that the debts are attributed to a bad business manager who was fired years ago. They also told reporters that the singer already paid more than the principal debt and most of the amounts owed to taxes were interests that piled up when the singer were proposing a repayment plan but was rejected.

For more than 50 years, the five-time Grammy winner has topped music charts in the 1980s and 1990s building a highly successful career. Her recent stint in television hasn’t gone well and may have caused damage to her legacy. Representatives believe that she is still an in-demand artist who will be able to easily bounce back.

Bankruptcy is an effective tool that helps people going through the stress of a difficult financial situation find their footing again and attempt a brand new start with their finances. Those who are going through the same is encouraged to speak to a legal professional who could provide accurate information and sound advice on bankruptcy matters and debt solutions.

Keywords: Dionne Warwick, chapter 7 bankruptcy, difficult financial situation

About The Author

Victor Dela Casa is a Filipino-Canadian who spent over a decade working as a business professional in Canada. Worked in IT, finance, marketing, international trade, public service, project management and the maritime industry. Earned degree in Economics from the University of the Philippines and Business Administration Honours from Eastern College. Currently based in the Philippines and working as a professional writer for a multi-national business processes firm.