MC Hammer’s meteoric rise to fame hit a pinnacle in 1990 when Forbes Magazine estimated the rapper’s worth at about $33 million. So, why is it that MC Hammer filed bankruptcy only six years later? For this celebrity, his road to bankruptcy began with his inability to say no to himself and to others. Before filing for bankruptcy, MC Hammer was known for his ostentatious lifestyle. He spent at estimated $12 to $20 million building a custom mansion on a 20-acre estate. But he didn’t limit his lavish spending on only himself; he had an huge entourage of 60 onstage performers and 100 backstage members which cost him millions of dollars. So what was the lesson that MC Hammer learned after filing bankruptcy?
“It’s time to close out old business and stop being the lottery for people who see MC Hammer as this big celebrity with a bottomless pit of dreams for people,” he told the Hollywood Reporter after declaring bankruptcy.
Most debtors filing bankruptcy are not supporting a large entourage of performers and groupies but MC Hammer’s road to bankruptcy can be a lesson for all debtors looking to successfully exit their bankruptcy and improve their financial health. It is absolutely essential for the financial health of every post-bankruptcy debtor to avoid becoming the financial life support of adult family members and friends. Many bankruptcy attorneys have witnessed firsthand post-bankruptcy debtors falling prey to family and friends who want to latch on to the new and improved debtor’s credit worthiness. Just say no to personal loans or co-signing loans for family and friends, your financial health after bankruptcy will depend on it.