Famous People Who Filed for Bankruptcy
Bankruptcy can certainly be a game-changer, but that can be a good thing. For a diverse group of famous Americans, bankruptcy was the first step on their path to financial and professional success. Rather than holding these individuals back, bankruptcy became an interesting footnote to their fascinating personal stories.
Famous people who filed for bankruptcy include—
Abraham Lincoln
Think bankruptcy will stop you from achieving your goals? Think again. Before he cemented his place in U.S. history as the 16th President, Abraham Lincoln filed for bankruptcy. In 1833, Lincoln and a partner purchased a general store and began buying other stores' stock on credit. Sales were dismal and Lincoln's venture was failing. He sold his shares in the company but when his former business partner died, Lincoln was held responsible for the debts.
Walt Disney
Mickey Mouse. Donald Duck. The Magic Kingdom®. When we think of Walt Disney, bankruptcy is not the first thing that comes to mind. But without bankruptcy it is possible that Walt Disney's story—and the vacation plans of millions of children—could have been drastically different.
In 1921, Disney founded Laugh-O-Gram Films in Kansas City, Missouri. Within two years Disney's financial backers withdrew their support and he filed for bankruptcy. The failure of Laugh-O-Gram Films freed Disney to head west to Hollywood where he created Mickey Mouse in 1928 and became one of the most successful animators in history.
Henry Ford
The Ford Motor Company is no stranger to financial challenges. When Henry Ford founded the company in 1903, he already had two failed auto manufacturing businesses to his name. The first company ended in bankruptcy and the second due to a disagreement between business partners. Fortunately, the third time was the charm—the Ford Motor Company got off the ground with a cash investment of $28,000 and was down to a mere $223.65 before selling its first car.
Milton Hershey
Bankruptcy was far from the kiss of death for Milton Hershey's career. Despite four failed candy businesses that plunged him into bankruptcy, Hershey rebounded in 1903 with a fifth attempt that brought him sweet success.
Cyndi Lauper
It may be true that "Girls Just Want to Have Fun," but some just want to get out of debt. At least, that was the case with Cyndi Lauper. Before recording the hit song, she was a member of the group Blue Angel. When the band split after a flopped record, their manager sued them for $80,000. Lauper was forced into bankruptcy in 1980 but recovered quickly and became an 80s icon.
Donald Trump
His current catchphrase may be "You're fired," but in the early 1990s the word Donald Trump was most familiar with was "bankruptcy." Despite being $900 million in the red, Trump restructured his debt and rebuilt his empire to its current form.
Mark Twain
William Faulkner called him the "father of American literature," but even that title could not save Mark Twain from poor investments and the failure of his publishing house. In 1894, Twain filed for bankruptcy on the advice of a friend. He transferred the copyright on his books into his wife's name to protect them from his creditors before embarking on an around-the-world lecture tour to repay his debts. Twain settled up with his creditors in 1898.
Larry King
He is best known for his interview skills and his trusty red suspenders, but Larry King's financial history raised some questions of its own. After making a name for himself working in radio throughout the 1960s, by the late '70s King found himself more than $350,000 in debt and facing charges of grand larceny and accused of stealing $5,000 from a business partner. The charges were dropped and King's name cleared, but he filed for bankruptcy in 1978 to help recover from the debt.
