Dionne Warwick Files For Bankruptcy
Dionne Warwick has filed for bankruptcy. The recording artist owes $10.2 million in tax claims to the state of California and the IRS, as well $500,000 to a past manager and $20,000 in credit card debt, all while claiming just $25,000 in assets, The New York Daily News reports.
Warwick earns a healthy monthly income of $20,950, but indicated that her expenses eat up all but $10 of that sum.
During her career, Warwick, won five Grammy Awards and sold more than 100 million records, but the wealth of riches has evaporated due to poor money management.
“Due to several consecutive years of negligent and gross financial mismanagement, Dionne Warwick has realized the current necessity to file personal bankruptcy,” publicist Kevin Sasaki said in a statement, according to CNN.
Warick’s troubles only mounted when she couldn’t construct an effective payment plan.
"In light of the magnitude of her tax liabilities, Warwick has repeatedly attempted to offer repayment plans and proposals to the IRS and the California Franchise Tax Board for taxes owed," Sasaki said. "These plans were not accepted, resulting in escalating interest and penalties. Although the actual amount of back taxes owed have been paid, the resulting penalties and interest has continually accrued." — Hal Sundt
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