Michael Jackson’s death has shocked the world.

If we were too young to remember him belting out top hits as a round-faced child, we probably have vivid memories of him monster-dancing on MTV or dangling his kid over a Berlin balcony.

And as the globe starts to process his death, we take a look at the entertainer’s troubled fiscal life.

Michael Jackson’s Wild Spending Habits

Jackson left this world with his checkbooks in disarray.

There was hope that his upcoming, sold-out 50 show London tour would sweep him out of the red, but that hope shattered yesterday when he died in an LA hospital after a cardiac arrest that was rumored to stem from a Demerol injection.

The King of Pop died with as much as $500 million in debt, according to sources recently cited in the Wall Street Journal.

When you look at some of his wild purchases, it’s not hard to understand how his debt got so out of control.

Some of the items he bought included:

• a Ferris wheel and the rest of the infamous Neverland playground
• a bronze sculpture of an Indian
• an arcade collection
• a personal ice cream cart
• a life-sized Lego model of Darth Vader
• a 1989 Rolls Royce limo with 24-karat gold trim
• a statue of E.T.
• a zoo (remember Bubbles Jackson?)

And that’s just a fraction of his possessions.

When Jackson was on trial in 2005 for child molestation charges, a forensic accountant testified that Jackson was spending $20-$30 million every year. (Jackson was later acquitted of all criminal charges.)

But Jackson’s money problems go well beyond shopping sprees.

Michael Jackson's Legal Problems Contribute to Debt

Years before the criminal trial, Jackson settled a civil lawsuit for $22 million with a boy’s family who alleged Jackson sexually assaulted the child.

Jackson and his reps denied any wrongdoing and said he was settling to “move on”.

As recently as last year, Jackson was sued by the son of the King of Bahrain who said he owed him $7 million.

Jackson argued that he thought the sheik had given him gifts, but the sheik said he had actually invested in a songwriting business with the pop legend.

Jackson ended up settling with him for an undisclosed amount.

Lawsuits, settlements and frantic shopping sprees add up quickly.

So, the question left to answer is what happens to all of his debt now he’d dead?

Debt After Death—Is Jackson’s Family Responsible?

Typically, family members are not responsible for the debts of a deceased love one; however, there are exceptions.

Read on for information on how Jackson’s debts could fall to people close to him.

Repossession and Foreclosure After Death

Contrary to popular belief, in many cases, loans are not automatically dismissed just because the debtor dies.

Secured debt (debt tied to a property, such as a home or car loan) can still be repossessed by the bank to cover the balance of an unpaid loan.

That means a dead person can lose their home or car even after they’ve been laid to rest.

If another person’s name is on the loan, they would likely be responsible for the debt.

So, for example, if Lisa Marie Presley (Jackson’s former wife) signed on a mansion with him, she could likely be responsible for that debt.

Credit Card Debt After Death

If any person held joint credit cards or lines of credit with Jackson, it’s probable they would be responsible for paying the remaining debt.

Keep in mind, if a person is an “authorized user” on a credit card, (which is different than a co-applicant or joint account holder), then they typically don’t have to pay.

But there’s a twist—under certain circumstances, an authorized user may still be liable for those debts because the balances on those accounts may become the responsibility of the estate.

Did Jackson Have Co-Signers?

If someone was a co-signer on a loan Michael Jackson took out, he or she may very well be responsible for that debt.

Co-signers often get the short stick.

In fact, co-signers are usually even responsible for debt if the original debtor files bankruptcy (except in most cases of Chapter 13 bankruptcy).

Michael’s Debt Didn’t Define Him

As fans wander through the stages of mourning, a strong feeling emerges—Michael Jackson can’t not easily be defined, nor should he be.

He, like us, is a multifaceted, complex human being.

Being on the brink of filing bankruptcy doesn’t define you.

Yes, he was a debtor and a shopaholic, but he also was the King of Pop, a father, a son, a brother, an artist, a philanthropist and a friend to many.

Our hearts go out to his family.