Experts said the personal bankruptcy of Jackson's parents in 1999 could work against Katherine taking control of the estate.

Court documents show Katherine and Joe Jackson filed for Chapter 7 and listed nearly $24 million in debts that included court judgments, auto loans and credit cards. The only valuable asset listed was a house in Las Vegas then valued at $290,000. The bankruptcy was terminated in March 2007, but the documents gave no further details.

"I think it would be a negative factor but not necessarily a disqualifier," said Beth Kaufman, a Washington, D.C.-based attorney specializing in estate tax issues. "It could indicate that she is not capable of sound financial management."

Jackson was recently in shaky financial health. In the most detailed account yet of the singer's tangled financial empire, documents obtained by us show Jackson claimed to have a net worth of $236.6 million as of March 31, 2007.

Since that time both Jackson's debts and assets grew substantially - he refinanced loans later that year that increased his debt load by tens of millions of dollars, but the Sony/ATV Music Publishing joint venture also spent hundreds of millions acquiring new songs.

Jackson's health also was a concern in his final days. A nutritionist who was working with the singer as he prepared his comeback bid said Jackson was so distraught over persistent insomnia in recent months that he pleaded for a powerful sedative despite warnings it could be harmful.

Cherilyn Lee, a registered nurse whose specialty includes nutritional counseling, also said she got a frantic phone call from Jackson four days before his death that made her fear that he somehow obtained Diprivan or another drug to induce sleep.

... contd.