Reportedly Lindsay Lohan is facing serious financial problems and can’t seem to get a hold on her spending. Since she hasn’t made a movie since the 2007 box office flop “I Know Who Killed Me” the starlet reportedly said that she is even struggling to pay the mortgage on her Los Angeles area home. Could there be a foreclosure in her future?
I know many of us don’t believe some of our favorite celebrities could be facing foreclosure, bankruptcy and other financial problems like us “mere mortals” but the truth of the matter is that often financial problems are exacerbated once someone becomes famous. In the case of Lindsay Lohan, her celebrity status seems to have created a mess of her finances. Rumor has it that Lindsay Lohan’s finances are so bad that she is now living on credit and is even borrowing money from friends. Sound familiar? A friend was even quoted as saying that for every dollar Lohan earns she spends two. If that’s true, it may not be too long before we hear of a foreclosure or bankruptcy in Lohan’s future.
While we don’t know all the details of Lindsay Lohan’s finances, we do know that spending twice what you earn is a sure road to financial disaster and a sign that bankruptcy may be necessary. And if it is true that Lindsay Lohan is using credit cards and borrowing from friends to make ends meet, she’s already deep in a financial hole that could be difficult to climb out of without bankruptcy.
It may be wise for Lindsay Lohan to spend a little time with a professional bankruptcy attorney to find out her options. She may still be able to save her home from foreclosure and if she has massive credit card, she may be able to partially or wholly discharge it during bankruptcy. What she should definitely do now is make a true assessment of her financial situation and stop borrowing from credit cards and friends.
It t can be difficult for celebrities to make an honest assessment of their situation because they have an image to hold up to the public. However, it is critical to do so if Lindsay Lohan wants to survive these financially trying times.