Celebs Who Went Bankrupt After Making Millions

Fame and fortune often go hand in hand but maintaining immense wealth requires financial discipline that many stars lack. Massive earnings can evaporate quickly due to lavish spending habits and predatory advisors or legal battles. Even the most successful entertainers have found themselves facing foreclosure or tax liens after generating millions in revenue. The following individuals experienced severe financial hardships that forced them to restructure their assets or declare bankruptcy.

50 Cent

Curtis Jackson filed for Chapter 11 bankruptcy protection in 2015 despite his massive success in the music industry. The rapper cited debts falling between ten and fifty million dollars due to various legal judgments and failed business ventures. He notably lost a privacy lawsuit that cost him millions and strained his liquidity. Jackson eventually settled his debts by paying out over twenty million dollars to his creditors to discharge the bankruptcy.

Nicolas Cage

The star of ‘National Treasure’ blew through a fortune estimated at one hundred fifty million dollars on highly eccentric purchases. He bought multiple European castles and a dinosaur skull and even purchased a private island in the Bahamas. The Internal Revenue Service eventually slapped him with tax liens totaling over fourteen million dollars for unpaid property taxes. Cage spent years taking numerous film roles specifically to pay off his massive debts to the government.

Mike Tyson

The heavyweight champion earned hundreds of millions during his boxing career but filed for bankruptcy in 2003. Tyson reportedly spent his fortune on Siberian tigers and mansions and expensive jewelry. His filing revealed he was twenty three million dollars in debt to the IRS and various lawyers. He has since rebuilt his financial standing through exhibition fights and acting roles and business ventures.

Kim Basinger

This Academy Award winner faced financial ruin after purchasing the town of Braselton in Georgia for twenty million dollars. She intended to turn the location into a tourist attraction with film studios but the project failed completely. A breach of contract lawsuit regarding the film ‘Boxing Helena’ forced her to file for bankruptcy in 1993. Basinger eventually settled with the studio and sold her interest in the town to regain stability.

MC Hammer

Stanley Burrell earned over thirty million dollars in the early nineties thanks to his hit songs and energetic performances. He employed a massive entourage of two hundred people and purchased a mansion with gold plating. His monthly expenses wildly exceeded his income and led to a bankruptcy filing in 1996 with thirteen million in debt. The artist eventually became a pastor and tech investor after losing his music fortune.

Wesley Snipes

The action star known for ‘Blade’ faced serious legal consequences alongside his financial troubles. He was indicted for tax evasion and eventually served three years in prison for failing to file tax returns. The government claimed he owed millions in back taxes and penalties to the Internal Revenue Service. His financial recovery has been slow as he continues to work in Hollywood to resolve outstanding liabilities.

Burt Reynolds

The leading man of ‘Smokey and the Bandit’ was one of the highest paid actors in the world during the seventies. His finances collapsed due to a costly divorce and failed investments in a restaurant chain called Po’ Folks. He filed for bankruptcy in 1996 with over ten million dollars in debt. Reynolds continued working until his death to maintain his lifestyle and pay off creditors.

Willie Nelson

This country music legend found himself in deep trouble with the IRS in 1990 after his accountants mismanaged his funds. Federal agents seized his assets and properties to cover a tax bill that totaled thirty two million dollars. Nelson released an album titled ‘The IRS Tapes: Who’ll Buy My Memories?’ to help generate funds for the debt. He eventually paid off the balance through hard work and relentless touring.

Toni Braxton

The singer behind ‘Un-Break My Heart’ has filed for bankruptcy twice during her illustrious career. Her first filing in 1998 resulted from a restrictive recording contract that paid her very little royalties despite high sales. She filed again in 2010 after health issues forced her to cancel a self-funded Las Vegas residency. Braxton has since recovered and continues to perform and appear on reality television.

Stephen Baldwin

The youngest Baldwin brother filed for bankruptcy in 2009 with millions of dollars in debt. He owed a significant amount on his mortgage and faced foreclosure on his New York home. Additional debts included taxes and credit card bills that he could not cover with his acting income. He has faced continued legal struggles regarding state income taxes in subsequent years.

Gary Busey

The actor famous for ‘The Buddy Holly Story’ filed for Chapter 7 bankruptcy protection in 2012. He reported less than fifty thousand dollars in assets against debts ranging from half a million to one million dollars. His liabilities included money owed to the IRS and various lawyers and medical professionals. Busey successfully discharged the debt and continued his career in reality television.

Meat Loaf

Marvin Lee Aday faced dozens of lawsuits early in his career that left him financially crippled. The success of ‘Bat Out of Hell’ was marred by legal battles with his songwriter and management. He declared bankruptcy in the eighties after his follow-up album failed to generate expected revenue. He eventually rebuilt his wealth through touring and acting roles in films like ‘Fight Club’.

Cyndi Lauper

The pop icon filed for bankruptcy before she achieved solo fame with ‘Girls Just Want to Have Fun’. Her band Blue Angel failed commercially and resulted in a lawsuit from their former manager that crushed her finances. She worked in retail stores and sang in Japanese restaurants to make ends meet during this period. Her subsequent solo deal turned her into a global superstar and solved her financial woes.

Larry King

The legendary talk show host filed for bankruptcy in 1978 before landing his iconic role at CNN. He had accrued over three hundred thousand dollars in debt due to questionable business partners and excessive spending. King owed money to gambling creditors and banks and had barely any assets to his name. His career turnaround later that year set him on a path to becoming a millionaire.

Marvin Gaye

The Prince of Soul filed for bankruptcy in 1976 largely due to an expensive divorce settlement with Anna Gordy. The judge ordered him to pay six hundred thousand dollars in royalties from his next album to his ex-wife. This ruling led to the creation of his album ‘Here, My Dear’ which detailed the dissolution of their marriage. Tax issues also plagued the singer until his untimely death.

Tom Petty

The rocker filed for bankruptcy in 1979 as a strategic legal maneuver rather than due to a lack of funds. He wanted to escape an unfair contract with his record label after his original distribution company was sold. The tactic worked and allowed him to sign a more favorable deal with a new label. This bold move set a precedent for other artists fighting for better contractual terms.

Wayne Newton

Mr. Las Vegas filed for Chapter 11 reorganization in 1992 holding more than twenty million dollars in debt. He had sued NBC for libel regarding a news report but the legal battle drained his resources. Newton eventually restructured his finances and continued his lucrative residency in Las Vegas. He remains one of the highest grossing entertainers in the history of the city.

Dennis Rodman

The NBA Hall of Famer faced severe financial distress after retiring from professional basketball. Court documents revealed he was broke and unable to pay child support and spousal support. His lawyers claimed he was barely solvent due to his struggle with alcohol and bad investments. Rodman later engaged in various promotional stunts and reality shows to earn income.

Lena Headey

The actress who played Cersei Lannister in ‘Game of Thrones’ claimed she had only five dollars in her bank account in 2013. She was in the middle of a contentious divorce and custody battle that drained her liquid assets. Headey had to rely on credit cards to cover living expenses while waiting for tax refunds. Her financial situation improved dramatically as the show became a global phenomenon.

Drake Bell

The former Nickelodeon star filed for bankruptcy in 2014 claiming he was nearly six hundred thousand dollars in debt. He owed money to the tax authorities and had significant expenses that outpaced his dwindling income. The value of his house was less than the mortgage amount which left him upside down on the property. Bell has since focused on his music career and touring to generate revenue.

Lil’ Kim

The rap icon filed for bankruptcy in 2021 to save her New Jersey mansion from foreclosure. She owed millions in back taxes and mortgage payments that she could not cover with her current income. Her filing revealed she had assets worth roughly two million dollars against four million in debt. The court eventually dismissed her case but she managed to settle some issues privately.

Aaron Carter

The late pop singer filed for bankruptcy in 2013 with over two million dollars in debt. The majority of his liability was owed to the IRS from earnings during his peak teen idol years. Carter claimed he had very few assets and a low monthly income at the time of the filing. He worked on rebuilding his career through touring before his passing.

Joey Lawrence

The ‘Blossom’ heartthrob filed for bankruptcy in 2017 after accumulating significant credit card debt. He and his wife admitted to living beyond their means with expenses far exceeding their monthly earnings. The filing revealed they had sold clothes and furniture just to keep up with bills. Lawrence has continued to work in television movies to stabilize his finances.

Boris Becker

The tennis legend was declared bankrupt by a British court in 2017 over an unpaid loan on his estate in Mallorca. He owed millions to private bankers and had failed to pay the debt for two years. Becker attempted to claim diplomatic immunity to avoid the proceedings but the strategy failed. He was later sentenced to jail time for hiding assets during the bankruptcy process.

Pamela Anderson

The ‘Baywatch’ star faced financial trouble in 2009 due to massive renovation costs on her Malibu home and unpaid taxes. She was hit with tax liens totaling hundreds of thousands of dollars from both federal and state agencies. Anderson had to sell her home to pay off the contractors and the government. She has since lived a more modest lifestyle in Canada.

Terrell Owens

The NFL wide receiver earned eighty million dollars during his career but lost nearly all of it. Bad investments in real estate and an entertainment complex in Alabama drained his accounts. He also faced significant monthly child support payments that became unmanageable after he retired. Owens admitted on ‘Dr. Phil’ that he had no money left from his football days.

Allen Iverson

The basketball superstar earned over two hundred million dollars but declared bankruptcy due to excessive spending on jewelry and his entourage. A judge ordered his bank account seized to pay a debt to a jeweler in 2012. Fortunately for Iverson a trust fund from Reebok will pay him thirty million dollars when he turns fifty five. This deferred payment saved him from permanent financial ruin.

Evander Holyfield

The boxing champion faced foreclosure on his one hundred nine room mansion in Georgia due to financial mismanagement. He owed substantial amounts in child support and back taxes that depleted his career earnings. The bank eventually auctioned off his home for a fraction of its construction cost. Holyfield continues to make appearances to support himself.

Warren Sapp

This NFL defensive tackle filed for bankruptcy in 2012 just months after retiring from professional football. He owed nearly seven million dollars while having only six million in assets. His debts included alimony and child support and unpaid property taxes on unsold real estate. Sapp had to auction off his massive sneaker collection and other personal items to satisfy creditors.

Francis Ford Coppola

The director of ‘The Godfather’ filed for bankruptcy protection three times during the eighties and nineties. His financial troubles stemmed largely from the box office failure of his musical ‘One from the Heart’. He owed roughly ninety eight million dollars to various creditors after self-financing the project. Coppola spent years directing studio films to pay off the debts incurred by his personal studio.

Jerry Lewis

The comedy legend filed for bankruptcy in 1949 just as his partnership with Dean Martin was taking off. He owed money for cars and clothes and personal loans that he could not repay. Lewis admitted that he was terrible with money and spent it as fast as he earned it. His subsequent success in film and telethons ensured he never faced such trouble again.

La Toya Jackson

The middle Jackson sibling filed for bankruptcy in 1995 to escape an abusive marriage and management contract. She claimed her husband had controlled her finances and racked up huge debts in her name. The filing was a necessary step to sever legal and financial ties with him. She successfully rebuilt her life and career after the separation.

Dionne Warwick

The legendary singer filed for bankruptcy in 2013 with debts totaling nearly ten million dollars. Most of the liability was due to unpaid taxes that had accumulated over several decades. Warwick claimed a business manager had mishandled her affairs and failed to pay the government. She was allowed to keep her personal belongings and modest pension.

Sinbad

The comedian filed for bankruptcy twice with the second filing occurring in 2013. He owed eleven million dollars primarily to the IRS and state tax agencies. Sinbad stated that he simply did not have the income to pay the back taxes while covering current living expenses. He continues to perform stand-up comedy to manage his financial obligations.

Isaac Hayes

The soul legend and voice of Chef on ‘South Park’ filed for bankruptcy in 1976. He lost the rights to his future royalties after the collapse of Stax Records. Hayes owed six million dollars and was forced to sell his home and personal property. He eventually regained his financial footing through acting and voice-over work.

David Cassidy

The teen idol from ‘The Partridge Family’ filed for bankruptcy in 2015 shortly before his death. He claimed to have assets and debts that were roughly equal but lacked liquidity. Cassidy was battling health issues including dementia which impacted his ability to tour. His Florida home was sold to help satisfy the creditors listed in the filing.

Mick Fleetwood

The drummer for Fleetwood Mac filed for bankruptcy in 1984 despite the massive success of the album ‘Rumours’. He cited a severe cocaine addiction and bad real estate investments as the primary causes. Fleetwood admitted to spending millions on drugs and failing to pay attention to his business managers. He has since recovered and continues to tour with the band.

T-Pain

The auto-tune pioneer admitted to losing a forty million dollar fortune due to bad spending habits. He purchased a Bugatti and other luxury items without considering his tax liabilities. At one point he had to borrow money just to buy burger meals for his children. T-Pain learned to manage his money better and has rebuilt his wealth as an independent artist.

Brendan Fraser

The star of ‘The Mummy’ petitioned a court in 2013 to reduce his alimony payments because he could not afford them. He was paying nine hundred thousand dollars a year while facing a dry spell in his acting career. Health issues from performing his own stunts also limited his ability to work. Fraser has recently made a major comeback with his Academy Award win.

Lindsay Lohan

The child star faced severe financial difficulties in 2012 when the IRS seized her bank accounts. She owed over two hundred thousand dollars in back taxes and struggled to find insureable work. Fellow actor Charlie Sheen reportedly gave her one hundred thousand dollars to help cover the debt. Lohan moved to Dubai and eventually stabilized her life and finances.

Michael Vick

The NFL quarterback filed for bankruptcy in 2008 while serving time in federal prison for dog fighting. He lost all his endorsement deals and his massive contract with the Atlanta Falcons. Vick owed nearly twenty million dollars to creditors and had no income during his incarceration. He eventually returned to the NFL and paid back the majority of his debts.

Dorothy Hamill

The Olympic figure skating champion filed for bankruptcy in 1996 after a failed business venture. She had purchased the Ice Capades in an attempt to revive the touring show but it drained her savings. Hamill was forced to sell the company and declare insolvency to protect her remaining assets. She continues to remain a beloved figure in the skating world.

Sheryl Swoopes

The WNBA star is often called the female Michael Jordan but she struggled significantly with her finances. She filed for bankruptcy in 2004 owing seven hundred thousand dollars with only a fraction of that in assets. Swoopes blamed bad representation and lawyer fees for her predicament. She eventually recovered and took on coaching roles.

Fantasia Barrino

The ‘American Idol’ winner faced foreclosure on her North Carolina home in 2009. She was the sole provider for her extended family which put a massive strain on her finances. Barrino also faced a lawsuit from her father regarding his portrayal in a memoir. She has since worked hard on Broadway and in recording to stabilize her financial situation.

Please share your thoughts on which celebrity financial collapse surprised you the most in the comments.