Just about everyone acknowledges that the economy has been rough for the last couple of years. Bankruptcies are being filed more than ever, and nearly everyone knows someone going through the process. It may surprise you to learn that filing for bankruptcy is something that even happens among the rich and famous. Money troubles with the wealthy tend to be much more extravagant, and if the individual is famous enough, it’s likely that their bankruptcy story is headline news. In fact, quite recently two major players in the sports world have had to file bankruptcy – that’s right, even millionaires run into money troubles.
A former football player by the name of Warren Sapp ran into one of the most common problems of bankruptcy – he made too many unwise purchases. Warren Sapp’s bankruptcy case is a great example to study because his mistake is very obvious. Sapp was an avid collector of paintings, a luxury that, in combination with a series of poor real-estate choices, led to his downfall.