Debt Haunts Iverson

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Allen iversonYou would expect an overnight celebrity to make a quick buck then spend it all on a lifestyle they cannot afford. After making $154 million, no one expected former All-Star and the league’s most valuable player, Allen Iverson to be one of them. After Iverson’s departure from the National Basketball Association in 2009, we all wondered what was in store for his future. Now approximately three years later, a Georgia judge has seized his bank account. This garnishment of the former NBA star’s earnings will help to repay a 6-figure debt to his jeweler.

According to court papers obtained by TMZ … Iverson was sued back in 2010 for allegedly stiffing Aydin & Company Jewelers on a $375,000 bill.

It seems that Iverson never responded to the lawsuit, so a default judgment was issued in favor of the jewelry store. This allowed A&C to collect $859,896.46 for the jewelry, court, interest, and attorneys’ fees. Without another response from Iverson, the judge signed off on an order, which allows the store to recoup their loss directly from Iverson’s Wells Fargo bank account.

Some of the reasons celebrities go bankrupt are due to a lack of a financial literacy, materialism, lack of investment, and misguided career longevity expectations. Most people may not take the time out to learn how to save, budget, and invest their earnings.

And most celebrities, like the rest of us, can get caught up in having the finer things in life. No one can blame them, but when the paychecks stop rolling in, it gets harder and harder to maintain that same standard of living.

Not surprisingly, many celebrities fall prey to deceitful advisors. Professionals, friends, and family, who are hired to manage their affairs often, take advantage. And living high on the hog while starring in a popular TV show or engaged in an infamous sports career is fun while it lasts, but not everyone can keep the money coming in when their initial career option has ended.

According to the Entertainment and Sports Programming Network (ESPN), Iverson is contemplating playing in minor league basketball in hopes of getting one last shot in the NBA.

Read more at CBS News.