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Famous people are sometimes forced into bankruptcy because of bad decisions and the inability to manage their finances as they grow or due to illness or disability. Many famous people have had to file for bankruptcy, and if you’re wondering who, here are a few examples.

1. Walt Disney

Walt Disney, one of the pioneers of animated movies, is credited for making kids’ dreams come true. His company was an empire, with everything from theme parks to films and merchandise. Disney’s famous characters include Mickey Mouse, Winnie the Pooh, and Princess Diana. While Disney might be a household name now, it wasn’t in the beginning. When Walt tried to get his bank to loan him $150,000 at 3% interest, they rejected him because they thought he didn’t have an extensive enough track record.

2. Nicolas Cage

An acting career in Hollywood has given him a large fan base. He has starred in many successful movies and TV shows, including Ocean’s Eleven, True Romance, and National Treasure. However, Cage has also flubbed up on a few contracts regarding movie deals. Some of his biggest failures include the movie The Wicker Man and the film Lord of War.

Nicolas Cage was one of the highest-grossing actors of the 90s. However, he was forced to file for bankruptcy due to a large gambling debt. He could not pay off his debts, which totaled almost $11 million, and later filed for bankruptcy. In 2009 Cage paid off most of his debt and worked out a deal where he would not have to be involved in the company’s business, which had filed for bankruptcy.

3. Mike Tyson

Mike Tyson’s boxing career was lucrative. It was one of the most successful in the sport, but Tyson’s personal life didn’t do so well. His marriage to Robin Givens fell apart, and he was accused of domestic violence over 100 times. And the end of his marriage was just the beginning of his financial downfall.

Mike Tyson is one boxer who spent millions too fast and couldn’t maintain his income throughout his boxing career. He was accused of not moving his finances well and losing money on many investments. He filed forbankruptcy in 2003 and eventually settled in 2010. His financial situation made him go bankrupt again in 2012, with a Chapter 13 plan.

4. Donald Trump

Donald Trump is an American business tycoon born and raised in New York City. His real estate career has helped him gain a great deal of wealth. He has built many successful businesses, including multiple casinos and golf courses. However, his financial situation was on the rocks for various reasons, including his divorce settlement with Marla Maples.

Trump has a powerful business empire that makes him one of the world’s most affluent people in business, but Trump is not without his financial ups and downs. In addition to several bankruptcies, he also had litigation against his corporations due to unpaid taxes and employees.

5. Dave Ramsey

Everyone marvels at the financial expertise of Dave Ramsey, and he is often featured in magazines like Time and Newsweek. He is a radio host and author of multiple books on finance. His advice has helped millions of people get out of debt. However, Dave has gone through some financial problems as well, including declaring bankruptcy in 1991 at the age of 35.

Dave Ramsey’s business started from nothing and grew into one that was self-sustaining. However, Dave had to file for Chapter 7 bankruptcy to get out of under $4 million in debt. Dave’s financial struggles aren’t something he wants to talk about, but they are well-known.

6. Burt Reynolds

A native of Florida, Burt Reynolds grew up in a small town. He started his acting career at a local theater and went to Hollywood. Burt Reynolds’ personal life was just as hectic as his movie career, and that caused his financial problems. He had a string of affairs with married women, over 30 lawsuits filed against him because of bribes or unpaid bills, and numerous doctors sought payment after performing procedures on him.

The late great Burt Reynolds was no stranger to liabilities and B-309 forms. The actor came onto the scene in the 70s and had a successful career with roles in hits such as Smokey and the Bandit, Deliverance, and The Longest Yard. However, his net worth was about $10 million at its highest point, but he ended up declaring bankruptcy.

7. Meatloaf

Meatloaf’s bankruptcy filing made headlines in 1983 when the singer was forced to file for bankruptcy after he had to pay over $1 million in taxes. Meatloaf still maintained his net worth at $5 million, and he continued with his music career. However, he filed for bankruptcy again in 2010 with a total debt of $2 million.

It’s easy to think that all celebrities have large incomes and don’t have to worry about finances. However, that isn’t always the case. With Hollywood salaries falling for many celebrities, you can see that even the rich get sued, bad investments happen, and divorces destroy a lot of wealth.

Liabilities are negative assets that you owe money on. They can be an expense you have coming up in the future, such as mortgage or car loan payments, or they can be current expenses like credit card bills and other loans. Regarding your balance sheet, liabilities are one of the three primary assets you need to account for.

The different types of liabilities include:

Short-Term Liabilities

These are the smallest liabilities, but they can still significantly impact your financial standing. Credit card bills and personal loans are two types of short-term liabilities that you need to pay off within a few months, or you could negatively affect your credit score. You can view your credit score on Credit Karma, a free website that you can use to monitor your credit score. High short-term liabilities could cause a low credit score, making it much more challenging to get approved for large purchases like a home or car.

That is why keeping your short-term liabilities low is essential to pay off credit cards and take out as little as possible in personal loans. Short-term liabilities also have much more flexibility in terms of repayment. Credit cards typically have a minimum monthly payment, and personal loans usually have a higher minimum amount due at the start of the loan. However, short-term liabilities are generally paid off in the order they were incurred.

Credit Card Liability

Credit cards are a type of short-term liability that many people use as a standard form of payment. Credit cards provide a convenient way to pay for everything from groceries to gas. However, they are also one of the most dangerous types of liabilities. If you do not pay off the total amount on your credit card each month, you will pay massive amounts of interest. If you cannot keep up with the payments, you might end up in debt for years, paying back even more than what you initially charged. You must try to avoid using credit cards, and if you have to use one, you must pay it off as quickly as possible.

Long-Term Liabilities

Long-term liabilities are much more significant and account for most of your liabilities. These include your mortgage, car loans, and student loans. Long-term liabilities are generally considered to be anything with a term lasting more than one year. These liabilities can be beneficial in the long run, but they can put a lot of pressure on your bank account early on. If you can pay off your long-term liabilities quickly, you will become much less financially encumbered.

You can face steep fines and penalties if you fail to pay these off on time. That is why it is so crucial that you stay on top of these payments, no matter how large they are. Long-term liabilities are more rigid when it comes to repayment, but one benefit they have going for them is that they are tax deductible. That means you could receive back some of the money you put into paying off these liabilities.

Mortgage Liability

You are creating a liability when you take out a mortgage to purchase a house. A mortgage liability is a long-term liability you will most likely have to pay off for the rest of your life. A mortgage is usually a few hundred thousand dollars, and the average length of a mortgage is about 30 years. It is important to note that you do not pay off the total amount of your mortgage at once. Instead, you make monthly payments towards your mortgage principal, the amount of money you borrowed initially. You can lose your home if you fail to make timely mortgage payments.

Auto Loan Liability

You borrow money from the lender when you take out an auto loan or lease a car. With that loan, you agree to pay a certain amount over a certain period. If you fail to make timely payments, you could lose your car, or the lender could try to garnish your wages.

Asset backed Liabilities

Asset-backed liabilities are financial instruments issued by institutions like banks or insurance companies. They represent a claim on tangible assets, such as real estate or corporate bonds. When asset-backed security is sold, the money raised is used to buy the actual asset. The bank then uses its profits to pay off the loan and make payments to investors who purchased the security in return for a premium. Asset-backed security can be either equity or debt. Equity-backed securities are securities backed by real estate, corporate bonds, and other assets, while loans back debt-backed securities.

A significant advantage of asset-backed securities is that they can provide necessary liquidity support to firms that need cash. Asset-backed securities also have attractive tax benefits compared with traditional debt. Asset-backed securities generally do not trigger any additional taxable event when redeemed or on maturity (even if redeemed at par). Asset-backed securities have less market risk than traditional debt because they are typically issued at fixed interest rates and do not involve any credit risk management activities.

Dividends are payments of income, usually to shareholders of a company. Historically, dividends were paid as cash. Nowadays, dividends are often paid partly in stock and partly by checks. They can be used either to purchase new shares or as cash payments.

Dividends have been around since the 18th century when investors in the British East India Company started to receive regular payments from their investment after paying out dividends from profits made from trading with India.

1. Property Dividend

Property Dividends are paid in the form of interest or dividends on shares issued by real estate companies. Property dividends benefit investors because they know the prize is guaranteed and can be used to secure an income (albeit small) during periods when interest rates are low.

The rent occurs when a property owner pays monthly rent bills on their flat or house. This kind of dividend is usually paid out to the tenants of the property. Sometimes, however, rents can be collected on behalf of tenants as part of the rental agencies’ administrative processes. The rent is usually a regular payment and does not fluctuate much.

A landlord will usually call for financial payments from the tenant so that repairs or maintenance to the property can be made or supplies can be bought. Payments made by a landlord are called rent which is different from property dividends.

2. Stock Dividend

A stock dividend is when a company distributes new shares among its financial stakeholders, which are not a part of the initial distribution. New shares are distributed at no cost to the stakeholders and can be sold or bought on the market like any other share. In 2004, Ford Motor Company distributed $10 billion in stock dividends to its shareholders due to its record level of profits. Stock dividends are sometimes distributed as compensation or to increase shareholder interest in a company. When stock dividends are paid out, the share price tends to fall immediately because the company is decreasing its total outstanding shares. Companies that have become publicly traded have been known to pay out stock dividends at least once in their first five years of existence (of course, this only applies to increasing companies).

3. Cash Dividends

Cash dividends are distributed in cash and do not need to equal a percentage of a share’s selling price. The amount paid out is usually included as part of the company’s financial statements and other distributions such as stock dividends. However, a portion of the tips may also be paid in stock rather than cash, depending on the preferences of the investors. As opposed to stock dividends, cash dividends permanently reduce a company’s total outstanding shares when paid out.

4. Subscription Dividends

Subscription dividends are only available to subscribers to a mutual fund. The amount paid is based on the amount subscribed by a certain number of investors. The number of shares issued to an investor depends on how many subscriptions are received for a specific fund. Subscriber dividends are available only for stocks in the American stock market and through direct subscription to a mutual fund. Subscription dividends come in two formats Graded, where the investor is entitled to additional payments or Lump Sum. Graded format prices the prize at the highest price, followed by a second high price and ranging downwards until a fixed price is reached. The lump Sum format gives all the investors a fixed amount of capital.

5. Pay per Share Dividends

This type of dividend allows investors to receive dividends according to the number of shares they own in a company. This payment type only applies to companies that have already paid out their annual dividends. Pay per Share dividends are also known as Pay on the Shares. These types of distribution are made after a company has already determined its yearly profits and paid all its obligations. The minimum amount that can be distributed as Pay per Share is $0.10 though smaller amounts are possible depending on whether the company has any capital left over. In most cases, pay per Share dividends are offered by listed companies and not-for-profit organizations such as banks.

6. Negative Dividends

Negative dividends occur when a company temporarily decreases the number of its total outstanding shares. These dividends are only made during the year when a specific share amount is divested from the company’s outstanding shares or stock. These dividends can also be referred to as reverse shares or share buybacks. Advisers usually recommend that investors avoid harmful tips because they can cause a company’s share price to decline and may not be accounted for by investors. Reverse shares are often used to increase shareholder interest in the stock by reducing the number of outstanding shares in the market, thereby increasing each Share’s value.

Working capital is a term that refers to the money and valuable assets that a business has on hand to operate, and it can be categorized as either tangible or intangible. “Below is an explanation of each type, followed by some examples of companies with solid working capital.

1. Tangible Working Capital

The following tangible assets are cash, receivables inventories, and other financial assets designated as current assets in the company’s accounting records. Actual working capital also encompasses fixed assets such as buildings, equipment, vehicles, and leasehold improvements.

2. Intangible Working Capital

Intangible working capital comprises accounts receivable, goodwill, trademarks, and patents. Intangibles are not found on the balance sheet in the form of notes or assets; they are present only in intangible assets such as copyrights, trade secrets, operating systems, and office furniture. Unlike tangible assets, intangibles have no fixed value. In addition to these assets, intellectual property such as brand name recognition or customer loyalty can also contribute to a company’s intangible working capital.

Tangible and intangible working capital can be used to run a business and can generally be classified as current or non-current assets. However, different considerations depend on the nature of the assets. It is important to note that tangible working capital is helpful since it covers cash, inventory, receivables, and fixed assets that a company will use to operate its business. In this regard, intangible working capital can be considered an addition for accounting purposes since it shows assets that cannot be seen on the balance sheet. In this regard, tangible working capital can be viewed as an addition for accounting purposes since it shows assets that cannot be seen on the balance sheet.

An advantage of intangible working capital is that it shows a company’s ability to generate cash in the future since it uses a brand’s future profits and growth potential to purchase intangible assets such as goodwill and trademarks. It creates future profits and increases long-term shareholder value while providing a positive company investment return.

Intangible working capital is essential since it helps to increase cash and cash equivalents while providing future returns. This allows the company to cover short-term liabilities. Intangible working capital can be considered an addition for accounting purposes since it shows assets that cannot be seen on the balance sheet.

Intangible working capital can also help a company operate smoothly with less debt and reduce administrative costs, increasing long-term shareholder value. Therefore, a company must consider not only their tangible working capital but also their intangible working capital to improve the level of profits, efficiency, and overall performance of their business operations.

Tangible working capital can also be liquid working capital and is used to measure the amount of money a company has on hand to operate. Intangible working capital can be referred to as cash and cash equivalents. In this regard, tangible working capital gives an overall picture of how a company is doing financially instead of intangible working capital, which provides insight into how the business will do in the future. A company’s intangible working capital indicates how well it will do in the future and its cash and cash equivalents show how well it is doing currently. Tangible working capital consists of the following.

3. Cash and Cash Equivalents

Cash and equivalents can be used for operating expenses and purchasing operating assets. It is not considered an investment or a liability because it does not affect ownership rights or title to the property. This can include money from checking accounts, savings accounts, money market accounts, certificates of deposit, stocks, bonds, and cash. The balance sheet may change if a company uses this working capital for financing or investing. However, if the money is used for operations, then there will be no impact on the balance sheet.