Seven Famous People who Survived the Bankruptcy

As the economy continues to look bleak, the word “bankrupt” is in the tips of more and more languages. While not able to pay the creditors of one is never a good situation for a company or an individual, may not be the financial kiss of death that you might think. (Just ask Donald Trump, whose casinos have gone bankrupt twice.)
A number of people have been too much and ended up filing for bankruptcy, only successful club and to find firmer financial footing again.

Here are some famous names to knew what was being strapped for cash:

1. Abraham Lincoln

His face can now appear on the penny, but at the same time, Lincoln was not a single penny spare. Lincoln tried many occupations as a young man, including the purchase of a general store in New Salem, Illinois in 1832.

While it may have been terrible at splitting rails, winning debates, and the lack of use of hats, Honest Abe was not much of a businessman. Lincoln and her partner began to buy from other stores inventories of credit, but its sales were disappointing.
As the store debts mounted, Lincoln sold his share, but when his partner died, the future president became responsible for the $ 1,000 in arrears. Lincoln did not have modern bankruptcy laws to protect him, so when creditors took him to court, which lost its two remaining assets: a horse and some art of surveying. That was not enough to foot their bill, however, Lincoln and continued to pay their debts well into the 1840s.

Lincoln’s is not alone in the annals of bankruptcy commanders in chief, though. Ulysses S. Grant went bankrupt after leaving office as a partner in an investment banking risk swindled him.

Thomas Jefferson filed for bankruptcy several times, even after leaving office, possibly because he threw around a large amount of cash in food and wine.

William McKinley declared bankruptcy, while serving as governor of Ohio in 1893 was $ 130,000 in the red before finally straightening out with the help of friends. He won the White House just three years later.

2. Henry Ford

Rife speculation about the future of the Big Three motor companies, leading some observers to wonder what Henry Ford would think of this financial risk. Ford could not really be too critical, however, because he was no stranger to the debt itself.

In 1899 the young mechanical engineer and started the automobile company in Detroit with the backing of three prominent politicians. Ford had not quite mastered the innovation and production techniques that make it possible rich, however. In the next two years, Ford has proved to be too perfectionist, and the plant only produces 20 cars as they painstakingly tinkered with designs.

The company went bankrupt in 1901 and reorganized the company into Henry Ford later this year. Ford finally left that group and, finally, we have things well in 1903, when he founded the Ford Motor Company. Things are not going so badly for the company Henry Ford after he left, either, which changed its name to one that can find a little more recognizable: the automobile company Cadillac.

Ford was not the only one who knew bankrupt auto magnate considered, however. General Motors founder William Crapo Durant was a huge success during the Great Depression who saw his fortune fall from $ 120 million to bankruptcy. He spent his last years at a bowling alley in Flint, Michigan.

3. Walt Disney

His name can be a strong brand today, but early in his career, Disney was just a filmmaker who struggle with too many bills. In 1922 began his first film company with a partner in Kansas City, Kansas.

The two men bought a used camera and the short publicity films and cartoons under the name of estuary study-O-Gram. Disney even signed an agreement with a company in New York for the distribution of films being produced. That arrangement did not work so well that, however, as the distributor Disney’s Studio trap.

Without the distributor of cash, Disney could not cover their overhead costs, and his studio went bankrupt in 1923. He then left Kansas City for Hollywood, and after a series of increasingly successful creations, Disney premiered a new character named Mickey Mouse in 1928.

4. Milton Hershey

Milton Hershey always knew he could make candy, but running a successful business just seems out of reach. Although he never had a formal education, Hershey was four years apprenticing in a candy shop before striking out on his own in Philadelphia in 1876.

Six years later, his store was low, as did a subsequent attempt to sell candy in the city of New York. Hershey then returned home to Lancaster, Pennsylvania, where he pioneered the use of fresh milk in the production of sweet and founded the successful Lancaster Caramel Company.

In 1900 he sold the caramel company for $ 1 million so it could focus on perfecting a milk chocolate formula. Once we finally nailed to the recipe, it was too rich (and also flush with delicious chocolate) for anyone remember the flops of his first candy business.

5. Burt Reynolds

Burt Reynolds was one of Hollywood biggest stars of the 1970s. Unfortunately, however, spent money like his career never hit a recession. He owned mansions on both coasts, a helicopter and a luxurious ranch in Florida.

Gradually, their financial situation is Grimmer made boneheaded career choices and a gradient expensive divorce from Loni Anderson. In 1996, the Bandit $ 10 million owed to its creditors and charges of “Cop and a half” not only flowing in quickly enough. Reynolds declared Chapter 11 bankruptcy, from which emerged in 1998.

Not only did not have to sell its trademark mustache at auction to pay your bills, including Reynolds has to keep his farm in Florida, Valhalla. This house of the exemption raised the ire of some observers who believe not in the gallows to a $ 2.5 million mansion, while the cancellation of $ 8 million in debt was very much in the spirit of the laws of bankruptcy provisions on the maintenance of a house.

In fact, when the Senate approved those measures tightening up loopholes in 2001, Reynolds keeping his ranch was one of the examples used to censor the bankruptcy procedure as going too easy on the rich. “There is no greater abuse of the bankruptcy,” said Senator Herb Kohl of Wisconsin.

6. J. Heinz H.

When Heinz was just 25 years, he and two partners started a company that made horseradish. As the legend goes, the pungent root was the first of the famous Heinz 57 varieties, but is not as lucrative as he had expected. A company of panic in 1875 bankruptcy of his company, but the passion for Heinz condiments stood firm.

The next year, Heinz had with his brother and a cousin to start a new business in Pittsburgh, Pennsylvania. The group began to reorganize the tomato sauce, and the business took off. Last year, HJ Heinz had more than $ 10 billion in revenue.
7. P.T. Barnum

Famous showman P.T. Barnum was always quick with a QUIP, but he was not as snappy on the repayment of their loans. Although it was a success showing rarities in New York and around the world, Barnum had a habit of lending cash to anyone who opened his wallet for him.
Had to use those funds to buy real estate, particularly around Bridgeport, Connecticut, where he is trying to encourage industrial development. Unfortunately for Barnum, who went too far with the loan in cash, and in 1855, things in depth. Barnum was in bankruptcy and owes its creditors almost half a million dollars.

Barnum did not give up, though, little by little, he worked in debt over the next five years. The businessman gave lectures around Britain about entertainment and making money, and it regained control of its main attraction, the American Museum in New York City in 1860.

In 1871, only a few months shy of his 61st birthday, Barnum entered the circus business with the Great Barnum Museum trip, the Trade Fair, Caravan and Circus, which raked in more than $ 400,000 in its first year.

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2 Responses to “Seven Famous People who Survived the Bankruptcy”

  1. Bankruptcy Blog Says:

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