Member Since: 10/14/2011
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Dionne Warwick living on $10 a month; files for bankruptcy
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Dionne Warwick has filed for bankruptcy after reportedly finding herself with a $1 million (£650,000) tax bill.
The debt stems from a tax bill in the '90s which was originally valued at $2.2m by the government, and it is alleged that mismanagement of her finances by a former manager has meant the star has struggled to balance it.
"Ms Warwick had a business manager who mismanaged her affairs. Before she knew it, she owed a gazillion dollars in taxes," Warwick's attorney Daniel Stolz told Rolling Stone.
"She's actually paid more than the face amount of the taxes, but with all of the crazy interest and penalties that they add, the number kept mushrooming - even though she paid off the amount that she owed in terms of the actual taxes."
Stolz explained that Warwick has always filed her taxes annually, but has not been able to broker an agreement with the IRS despite many attempts over the years.
"Just because someone is a well-known, prominent celebrity doesn't mean they're conversant in their financial affairs," he added.
"They rely heavily on people and frequently wind up waking up someday saying, 'Geez how did I get in this mess and how do I get out of it?'
"She was an innocent victim of terrible mismanagement."
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Dionne Warwick is living on just $10 a month, according to court documents.
The singer has filed for bankruptcy after owing a $10.7 million tax bill (£7.1m), with her attorney blaming a business manager who "mismanaged her affairs".
It has now been reported that Warwick is almost broke having only $1,000 (£700) in her bank account, according to the New York Daily News.
The star listed her monthly income as $20,950, but her outgoing expenses as $20,940 - leaving $10 of disposable cash.
Warwick claimed $25,500 in assets, including a laptop computer, furniture, a dining room set and books.
The majority of Warwick's $10.2m tax debt is from the IRS and the state of California, while she also owes her former manager $500k and has a Visa credit card bill of $20k.
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