Holy shit, what? Cat Power may cancel her European tour because she’s bankrupt? I just saw her last weekend in Royal Oak and she was awesome.
But I feel like this is pretty commonplace among indie musicians these days. Recently, there have been interesting articles on Grizzly Bear (http://www.vulture.com/2012/09/grizzly-bear-shields.html) and Ted Leo (http://www.theawl.com/2012/10/a-chat-with-ted-leo) talking about how their careers are not as lucrative as most people think.
All three pieces I linked to are worth reading, by the way.