One of the most popular American diva, actress and singer of 20th century, Dionne Warwick has been excused legally from paying off her debts. The total amount of debt which is racked up is more than $ 10 million. She was one of the highest paid female singers of that time and has millions of dollars to pay as tax debts. This American singer has been declared bankrupt by the US Bankruptcy Court of New Jersey. Because of Dionne Warwick bankruptcy, she has been excused from paying off all these debts which are dated back to 1991.
There are many people including former celebrities who have suffered from bankruptcy. The main reason behind this is their ignorance in management of the finance. Often their business managers are too inefficient to keep track on the finances and managing them. Thus it leads to bankruptcy which can get worse with time. First and foremost thing that one needs to do is to file a bankruptcy case. Dionne Warwick has done the same. She has filed a case for her bankruptcy. After some legal proceedings and hearings, she was considered a lot. She is also excused from paying off her back debts which is around $10 million.
Dionne Warwick’s Career
Undoubtedly, she is one of the best singers of that time and still she is considered as one of the most powerful female vocalists. She is one of the brightest names in the history of recording industry. She has provided some great soundtracks for over 5 decades for a generation. After all these decades of her music making and singing, she has won herself 5 Grammy awards. She must have thought that she has earned enough for a great and comfortable retirement. She has been nominated for many awards related to American music and also has won a lot of them. She has provided a lot of hit an popular songs to the people over a generation.
Reason Behind Bankruptcy
In the year 2013, on March 21 Dionne Warwick was declared as bankrupt by a Bankruptcy court in Newark, New Jersey. According to Warwick’s lawyer Daniel Stolz on Dionne Warwick bankruptcy case, the business manager of the singer has mismanaged her affairs and thus it resulted into this. Stolz also added that before she could know, she already owe a lot of money as taxes. Though she has paid more than the face value of the tax, but the penalties and interests that have been added kept on increasing. But Warwick has been allowed to keep her belongings and personal assets with her. These include fur coats, artwork, furniture, diamond earrings and cash amount of $1,000.
The tax issues had originated some 15 years ago and also had been resurfaced. She even fired her business manager who was found to be main culprit several years ago. The 90s American diva Warwick has also filed a bankruptcy once her credit counseling was done with the State of New Jersey. This counseling was done according to the requirement of the court. She listed the average monthly income of her as $ 20,950 and the total expenses amount to $ 20,940, making Dionne’s net worth essential zero (or even negative). According to the reports, it is only the interests which she is left to pay. She has paid off most of the back taxes. However, right now, she is earning that much what she barely needs to live. So, she could not pay any kind of debt anymore.
Till then, Dionne Warwick bankruptcy case is considered to be one of the most controversial high profile bankruptcy cases. The interesting fact is that she has paid off many taxes till date but the penalties and interest that has been mushrooming since 1990s, have now reached to an enormous amount of $10 millions. Being bankrupted due to mismanagement of the finance accounts, Warwick is not at all able to pay off this amount. Thus the bankruptcy court of Newark, New Jersey has excused her to pay this amount. In return, she has also been allowed to keep her assets and in cash with her if she wants. The true American Diva who was once the ruling singer of the recording industry should have never thought of facing such a day even in her nightmare. This is very sad how a mismanagement of accounts can give rise to such a big issue.