Michael Jackson’s Estate Reveals Shocking $500 Million Debt Before His Death; report

It has been revealed that Michael Jackson, aka the King of Pop, was $500 million in debt before his death. The revelation shocked many because, despite Jackson’s successful career, he ended up burying himself under multi-million debt. The main reason for Michael Jackson’s financial crisis had to do with his reckless spending, most of which was invested in jewelry.

How Michael Jackson ended up $500 million in debt at the time of his death

Michael Jackson died at the age of 50 on June 25, 2009, at his Los Angeles home from cardiac arrest caused by acute propofol poisoning. The rock star reportedly had more than $500 million in debt, according to recent court documents from June 21, obtained by PEOPLE.

According to the Los Angeles Times, Jackson found himself in a lot of debt because of his reckless spending. The newspaper reported court documents from Jackson’s 2013 trial, which revealed that Jackson squandered a lot of money on gifts, travel, art and furniture, but his main expense was jewelry. “He spent a lot of money on jewelry. He was strapped for cash,” said CPA William R. Ackerman.

By 1998, the King of Pop had collected a debt of $140 million. Between June 2001 and June 2009, this amount was increased by $170 million. Along with these growing debts, Jackson also had a growing interest in these amounts.

Additionally, the New York Times reported that Michael Jackson took out a $270 million loan from Bank of America for his catalog of collaborative songs with the Beatles. Before his death, Jackson was going to launch his highly anticipated This is It concert tour in London. But after his death, his estate was further alienated by an additional $40 million to cover the costs of the tour promoter, AEG Live.

How Michael Jackson’s Estate Repaid Its Loan

Jackson reportedly had more than 65 creditors at the time of his death, with more than a half-dozen pending cases worldwide. The petition says that despite being on the verge of bankruptcy, the estate has managed to negotiate terms with creditors and restructure its financial arrangements.

“The executors were able to renegotiate and restructure the financing arrangements that existed at the time of Michael’s death, at significantly reduced interest rates, allowing the estate to avoid the loss of any assets to the lenders and, in ultimately, to satisfy the charges that existed at the time of Michael’s death,” the petition reads.

The petition adds that the executors have been able to settle the majority of creditors’ claims and disputes, but that they still have few remaining business, tax and legal issues. The value of Michael Jackson’s estate is now $2 billion. The estate has been passed on to Michael Jackson’s three children: Prince, Paris and Bigi.