Two days ago, celebrity bankruptcy news broke that top music producer Scott Storch filed for Chapter 7 protection. Even if you don't know Storch's name, you certainly know the music he produced. He created beats for Beyonce, Jay Z, Dr. Dre and 50 Cent among others. By his early 30s, Storch was making six figures for 15 minutes of producing time. Now, he's got just $100 to his name, and nine years after he hit his pinnacle, Storch filed bankruptcy to try and clean up his act. Here's a look at his fall from $70 million in today's celebrity bankruptcy alert.
How Storch amassed a fortune
Storch went from childhood music prodigy to adult phenom then saw it all fall apart. He was a child of divorce and learned about rags to riches from his father Paul who had a gambling addiction and would show up driving either a Porsche or a beater depending on how his finances were faring. According to his mom, a young Scott liked to wear Rolex knockoffs at a young age and sketch Cadillacs.
Storch's dad Paul himself filed bankruptcy twice in 1997 and 2008. Storch dropped out of school and played piano to support himself after his dad left him. When he was 18, a scout from Geffen Records offered Storch's band a record deal. His manager Derek Johnson says Storch spent every penny as soon as it came into his hand, on watches, fast cars and the women he dated.
In 1998, Storch moved to LA to produce for Dr. Dre. Scott Storch was a millionaire by age 26 and his mother says she begged him to spend more wisely, but her son told her the hip hop community expected him to be stylish and spend this way. At his peak, he had built up a fortune of $70 million including an impressive catalog of music he was credited with co-writing.
How Scott Storch blew through $70 million
So how did this incredible music producer blow through that much money? He bought an $11 million Miami mansion, a $20 million yacht and expensive jewelry for himself and his ladies including Kim Kardashian, Paris Hilton and Lindsay Lohan. He lavished cars, gifts and vacations on the women he dated and blew major cash partying with friends and treating himself to a luxe lifestyle 24/7/365. But even with all that spending, he was still working and likely could have stayed head above water.
It was when Storch began abusing drugs, cocaine, in particular, according to his manager Derek Jackson, that thing started to really fall apart. Jackson blames the drug for Storch failing to show up at work, disappointing artists and the decline in his work and income. His cars were repossessed, his home was foreclosed on, he was sued and fell behind on child support payments for his two children. Storch has since gone through rehab and is rebuilding his professional reputation.
How bankruptcy will help Scott Storch and could help you
While most consumers don't have the dramatic highs and lows of celebrity bankruptcy cases, there are often common elements. Some people overspend - others fall prey to gambling, substance abuse or emotional issues that can lead to chronic overspending or cause earnings to fall. The bottom line is that anyone can get into money trouble.
Everyone deserves a second chance and bankruptcy is one way to allow yourself to move past the mistakes of your past and on to a brighter financial future. Even with a case as extreme as Scott Storch's, United States bankruptcy law allows a reset and a chance to get past overwhelming debt and start again.
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