Modern bankruptcy law often distinguishes reorganization, in which only some of the bankrupt's assets are taken, a repayment plan is devised and part of the debt is discharged, from liquidation.
In the US, the liquidation bankruptcy is governed by Chapter 7 of the Title 11 of the United States Code and is generally available to individuals passing a means test.
[7] Listed below are notable individuals who filed for personal bankruptcy or were subject to a similar form of insolvency management process.
The bankruptcy was a result of a failure of his condiment business Noble and Company selling horseradish, caused by the financial crisis known as the Panic of 1873.
[39] The bankruptcy followed the Wall Street Crash of 1929 and the ensuing Great Depression, which led to the failure of his company Durant Motors.
[115] The bankruptcy followed a judgement awarding Main Line Pictures $8,100,000 against her for walking away from the movie Boxing Helena.
[157] The bankruptcy was caused by her unsuccessful singing career[62] and $650,000 in damages claimed by Moulin Rouge for ending her contract early.
[159] (known as Anna Nicole Smith) (known as MC Hammer) The bankruptcy was attributed to his extravagant lifestyle and decreasing album sales.
[228] In 2012, Dykstra was sentenced to six and a half month in federal prison for bankruptcy fraud, concealment of assets, and money laundering.
[160][229] (known as Seán Quinn) His creditors included the IRS, Wells Fargo, Santa Monica UCLA Medical Center, and a storage company.
The bankruptcy was caused by a tax debt of nearly $5,200,000 related to his handling of a client's stock shares, which also led to his disbarment in 2001.