New York-born music producer Scott Storch filed a Chapter 7 bankruptcy petition in June after spending a $70 million fortune on private jet flights, real estate, jewelry, cars and cocaine. The 41-year-old previously filed for Chapter 13 bankruptcy in 2009 after he spent about $30 million in three years. At the time of his Chapter 7 bankruptcy filing, Storch claimed that all he owned was $100 in cash, a $3,000 watch and $500 worth of clothing. His debt was valued at almost $4.4 million.
Scott Storch is well known for producing hit songs for Snoop Dogg, Christina Aguilera, Beyonce and Chris Brown. In the early 2000s, he earned millions of dollars for producing a dozen Billboard Hot 100 hits. During that time, Storch used his fortune to fund his cocaine habit and party lifestyle. He reportedly purchased a 117-foot yacht and a 10-bedroom mansion on Miami’s Palm Island.
Storch ran into some trouble in 2012 when he was arrested for possession of cocaine in Las Vegas. In 2013, he was robbed of $100,000 worth of jewelry and $5,000 in cash while he was visiting Times Square to attend the MTV Video Music Awards. Storch said in a 2013 television interview that women and drugs were to blame for his downward spiral.
Filing for Chapter 7 bankruptcy protection can be a good move for someone who has more debt than assets. After a person’s non-exempt assets are liquidated in Chapter 7, many of the person’s unsecured debts can be discharged. An attorney may be able to help clients to determine if filing for bankruptcy is the best option for resolving their unique financial problems.
Source: Daily News, “Scott Storch files for bankruptcy, he has only $100 in cash,” Zayda Rivera, Nancy Dillon, June 24, 2015