Dr. Arnold Klein, Michael Jackson’s former dermatologist, has filed for Chapter 11 bankruptcy with over $3.5 million in debt. According to the bankruptcy filing, the list of creditors holding the 20 largest unsecured claims against Dr. Klein amounts to $3,518,584.The biggest accumulative debts against Dr. Klein was with City National Bank totaling some $2,695,150 in credit lines and unpaid mortgage loans.
In the bankruptcy filing it reveals that Klein owes American Express $79,493 in credit card fees, Bank Of America $79,852 in credit card and banking fees, Chase $17,579 in credit card fees and $51,857 with Citibank in credit card fees.
In addition, Klein owes a Dr. David Rish $115,000 and the IRS some $127,000 in unpaid taxes, plus $103,392 to medical firm Allergen for unpaid medical supplies.
Some may wonder how Klein, a dermatologist with an enormous celebrity clientele including Cher, Elizabeth Taylor and Dolly Parton could end up in Chapter 11 bankruptcy. Well, while Klein has not yet disclosed how he ended up so indebted and with so few assets, as with most celebrity figures or those living the celebrity life, living beyond ones means is often the case. Although Klein has been hit with sever tragedies and crises in the past few years. He suffered a house fire that cost him $200,000 in damages, plus he was sued by several people, ending up with several high priced judgment hanging over his head.
He could have very well been pushed into bankruptcy by any of these factors or a combination of them all. But the fact is that bankruptcy and the inability to pay debts can strike anyone. None of us, no matter how wealthy or famous can escape the reality that sometimes we simply cannot afford to continue to service debt. That’s why bankruptcy is a tool available to all of us, from the richest to the poorest.