Celebs Who Went Bankrupt After Making Millions

It’s common for celebrities to become wealthy, but staying rich takes careful money management, something many struggle with. High earnings can disappear fast because of extravagant lifestyles, bad advice, or legal problems. Even very successful performers sometimes face foreclosure or tax issues despite earning millions. The following people experienced significant financial difficulties, forcing them to reorganize their finances or file for bankruptcy.

50 Cent

Despite achieving significant success as a musician, Curtis Jackson (known as 50 Cent) filed for bankruptcy protection in 2015. He reported owing between $10 and $50 million, largely due to legal issues and unsuccessful business deals. A particularly costly privacy lawsuit severely impacted his finances. Ultimately, Jackson resolved his debts by paying over $20 million to those he owed, allowing him to emerge from bankruptcy.

Nicolas Cage

Nicolas Cage, known for his role in ‘National Treasure,’ famously spent around $150 million on unusual items. His purchases included several castles in Europe, a dinosaur skull, and a private island in the Bahamas. Eventually, the IRS filed over $14 million in tax liens against him due to unpaid property taxes. To resolve this massive debt, Cage worked for years, taking on many film roles specifically to pay it off.

Mike Tyson

Despite earning a huge fortune – hundreds of millions of dollars – as a boxer, Mike Tyson declared bankruptcy in 2003. Reports suggest he spent his money on extravagant purchases like Siberian tigers, mansions, and jewelry. At the time, he owed $23 million to the IRS and his legal team. Since then, Tyson has recovered financially through exhibition matches, acting, and various business opportunities.

Kim Basinger

The Academy Award-winning actress nearly lost all her money after buying the town of Braselton, Georgia, for $20 million. She hoped to transform it into a popular tourist destination with movie studios, but the plan didn’t work out. A legal dispute over the film ‘Boxing Helena’ led her to declare bankruptcy in 1993. She later reached an agreement with the studio and sold her stake in the town to get her finances back on track.

MC Hammer

In the early 1990s, Stanley Burrell, known professionally as MC Hammer, made over $30 million from successful songs and lively concerts. He lived a lavish lifestyle, supporting a large team of 200 people and even buying a gold-plated mansion. However, his spending quickly got out of control, and in 1996, he filed for bankruptcy owing $13 million. After losing his fortune, he later became a pastor and invested in technology.

Wesley Snipes

Wesley Snipes, the actor famous for his role in ‘Blade,’ ran into major trouble with the law and his finances. He was accused of not paying his taxes and ended up spending three years in prison for failing to file them. Authorities said he owed the IRS millions of dollars in unpaid taxes and fees. He’s been slowly rebuilding his finances while continuing to work in Hollywood to pay off what he still owes.

Burt Reynolds

Burt Reynolds, the star of ‘Smokey and the Bandit,’ was among the highest-earning actors of the 1970s. However, a difficult divorce and unsuccessful restaurant investments in a chain called Po’ Folks led to financial ruin. He declared bankruptcy in 1996, owing more than ten million dollars. Reynolds continued to work steadily until his death, hoping to support himself and repay his debts.

Willie Nelson

Country music star Willie Nelson faced a major financial crisis in 1990 when errors made by his accountants led to a $32 million tax bill. The IRS seized his possessions and property to cover the debt. Nelson responded by releasing an album called ‘The IRS Tapes: Who’ll Buy My Memories?’ to raise money. Through dedicated work and constant touring, he ultimately managed to pay off the entire balance.

Toni Braxton

Toni Braxton, famous for her hit song ‘Un-Break My Heart,’ has faced financial difficulties twice in her career. She first declared bankruptcy in 1998 because her record deal didn’t pay her fair royalties, even though her albums sold well. She filed again in 2010 after having to cancel a Las Vegas show she was paying for herself due to health problems. Thankfully, Braxton has recovered and is still performing and appearing on TV.

Stephen Baldwin

In 2009, the youngest Baldwin brother declared bankruptcy due to substantial debt. He was struggling to pay his mortgage and risked losing his New York home. On top of that, he also owed money in taxes and on credit cards, and his income from acting wasn’t enough to cover everything. He’s continued to have legal issues related to state income taxes in the years since.

Gary Busey

Gary Busey, known for his role in ‘The Buddy Holly Story,’ declared bankruptcy in 2012. He claimed assets of under $50,000, but owed between $500,000 and $1 million. This included debts to the IRS, as well as to lawyers and doctors. He was able to eliminate the debt and continued working, primarily on reality TV shows.

Meat Loaf

Meat Loaf, whose real name was Marvin Lee Aday, struggled with money problems throughout much of his career, facing numerous lawsuits. While his album ‘Bat Out of Hell’ was a huge hit, it was complicated by legal disputes with those involved in its creation. He filed for bankruptcy in the 1980s when his next album didn’t sell as well as expected. Fortunately, he was able to recover financially by performing concerts and appearing in movies, including ‘Fight Club’.

Cyndi Lauper

Before becoming a famous solo artist with the hit ‘Girls Just Want to Have Fun,’ she faced serious financial difficulties and filed for bankruptcy. Her band, Blue Angel, wasn’t successful, and a legal battle with their old manager wiped out her savings. To get by, she worked in retail and performed at Japanese restaurants. Eventually, a new solo record deal launched her to international stardom and resolved her money problems.

Larry King

Before becoming a famous CNN host, Larry King faced serious financial trouble and filed for bankruptcy in 1978. He’d racked up over $300,000 in debt thanks to bad business deals and overspending, owing money to both gamblers and banks. He had very few possessions at the time. Fortunately, a career breakthrough later that year changed everything and eventually led him to financial success.

Marvin Gaye

In 1976, singer Marvin Gaye filed for bankruptcy, mainly because of a costly divorce from Anna Gordy. The court required him to give his ex-wife $600,000 from the earnings of his next album, which inspired him to create ‘Here, My Dear’ – an album detailing their breakup. He also struggled with tax problems throughout his life, until his death.

Tom Petty

The musician declared bankruptcy in 1979, not because he was broke, but as a calculated legal strategy. He was trying to get out of a bad record deal after the company that originally distributed his music was sold. The plan succeeded, and he was able to sign a much better contract with a different record label. This daring move became an example for other artists who wanted to improve their contracts.

Wayne Newton

Known as ‘Mr. Las Vegas,’ Wayne Newton faced financial difficulties in 1992 and filed for bankruptcy protection. A costly lawsuit against NBC over a negative news report had depleted his funds. Eventually, he reorganized his finances and successfully continued performing his popular Las Vegas shows. He remains one of the city’s most financially successful entertainers of all time.

Dennis Rodman

After retiring from basketball, the NBA legend found himself in serious financial trouble. Legal papers showed he had no money and couldn’t afford to pay his child and spousal support. His legal team explained he was struggling financially because of problems with alcohol and poor investment choices. He later tried to make money through appearances and reality television shows.

Lena Headey

Lena Headey, the actress known for playing Cersei Lannister on ‘Game of Thrones,’ revealed she was nearly broke in 2013. She was going through a difficult divorce and fighting for custody of her children, which used up most of her money. She had to use credit cards to pay for everyday expenses while she waited for her tax return. Thankfully, her finances turned around when ‘Game of Thrones’ became incredibly popular worldwide.

Drake Bell

The actor, who was once a star on Nickelodeon, filed for bankruptcy in 2014, reporting almost $600,000 in debt. He owed back taxes and his spending exceeded his income. He also owed more on his house than it was worth. Since then, Bell has been focusing on making money through his music and touring.

Lil’ Kim

The popular rapper filed for bankruptcy in 2021 to prevent losing her New Jersey home to the bank. She was unable to pay several million dollars in overdue taxes and her mortgage. Court documents showed she had about two million dollars in assets but owed four million. Although the bankruptcy case was later dropped, she was able to resolve some of her financial problems outside of court.

Aaron Carter

The pop singer, who passed away recently, filed for bankruptcy in 2013, owing more than $2 million. Most of this debt was to the IRS, stemming from his earnings when he was a popular teen idol. At the time, he reported having few possessions and a limited income. He was working to revive his career through concerts before his death.

Joey Lawrence

The actor known for his role in ‘Blossom’ filed for bankruptcy in 2017 due to large credit card debts. He and his wife admitted they spent more money than they earned each month. They even had to sell belongings like clothes and furniture just to pay their bills. Since then, Lawrence has continued to work in TV movies to improve his financial situation.

Boris Becker

In 2017, a British court declared the tennis star bankrupt due to an unpaid loan related to his property in Mallorca. He had accumulated millions in debt to private banks and hadn’t made payments for two years. Although he tried to avoid legal proceedings by claiming diplomatic immunity, the attempt was unsuccessful. Ultimately, he was imprisoned for concealing assets during his bankruptcy case.

Pamela Anderson

Pamela Anderson experienced financial difficulties in 2009 because of expensive renovations to her Malibu house and back taxes she owed. She accumulated hundreds of thousands of dollars in tax liens from both the federal and state governments. To resolve these debts, Anderson was forced to sell her home and has since adopted a simpler lifestyle in Canada.

Terrell Owens

Despite earning $80 million during his NFL career, the wide receiver lost almost all of it. Poor investments in property and an Alabama entertainment venue, combined with high and ongoing child support payments, led to his financial downfall. He revealed on ‘Dr. Phil’ that he had no money remaining from his time playing football.

Allen Iverson

Despite earning over $200 million during his basketball career, the superstar filed for bankruptcy because he spent lavishly on things like jewelry and supporting a large group of friends and staff. In 2012, a court ordered his bank accounts to be taken to cover a debt owed to a jeweler. Luckily, a trust fund set up by Reebok will provide him with $30 million when he reaches age 55, preventing him from lasting financial hardship.

Evander Holyfield

It’s really sad to see what’s happened to Evander Holyfield. I mean, this boxing legend lost his incredible 109-room mansion in Georgia because of money troubles. Apparently, he fell behind on child support and taxes, and it just ate away at all the money he made during his career. It’s heartbreaking that the bank ended up selling it for way less than it cost to build. He’s still out there doing appearances, which is good to hear, but it’s a tough situation to see a champion like him go through that.

Warren Sapp

A former NFL defensive tackle declared bankruptcy shortly after retiring from football in 2012. He owed around seven million dollars, despite having assets worth about six million. His debts included payments for alimony, child support, and back taxes on properties he hadn’t sold. To pay off those he owed money to, he had to sell off valuable possessions, including a large collection of sneakers and other personal items.

Francis Ford Coppola

Francis Ford Coppola, the director of ‘The Godfather’, faced financial hardship and filed for bankruptcy three times between the 1980s and 1990s. These problems began with the poor performance of his musical film, ‘One from the Heart’, which he funded himself. He ended up owing around $98 million to lenders. To resolve these debts, Coppola spent many years directing mainstream films for major studios.

Jerry Lewis

The famous comedian declared bankruptcy in 1949, right as his career was beginning with Dean Martin. He’d racked up debts from purchases like cars and clothes, and personal loans he couldn’t manage to pay back. Lewis himself said he was bad with money, spending it quickly as he earned it. Thankfully, his later success in movies and charity events meant he never had financial problems like that again.

La Toya Jackson

In 1995, the middle Jackson sister declared bankruptcy to free herself from a difficult marriage and a bad business agreement. She stated that her husband had mishandled her money and created significant debt without her consent. This legal action was essential for ending their financial and legal connection. After leaving him, she was able to successfully restart her life and career.

Dionne Warwick

As a huge fan, I was really shocked to learn that Dionne Warwick faced financial difficulties and filed for bankruptcy back in 2013. It turned out she owed almost ten million dollars, mostly in back taxes that had built up over many years. She explained that she believed her business manager hadn’t handled things correctly and hadn’t paid her taxes on time. Thankfully, she was able to keep her personal possessions and still receive her pension, which was a relief to hear.

Sinbad

The comedian has filed for bankruptcy twice, most recently in 2013. At that time, he owed $11 million, mostly in back taxes to the IRS and state tax authorities. Sinbad explained he couldn’t afford to pay his taxes and cover his everyday living costs. He continues to perform stand-up comedy to help manage his debts.

Isaac Hayes

Isaac Hayes, the iconic singer and voice of Chef from ‘South Park,’ faced financial hardship and filed for bankruptcy in 1976. The failure of Stax Records meant he lost control of future earnings from his music. He accumulated six million dollars in debt and had to sell his house and belongings. Fortunately, he rebuilt his finances by working as an actor and doing voice-over roles.

David Cassidy

David Cassidy, the singer famous for ‘The Partridge Family,’ filed for bankruptcy in 2015, not long before he passed away. While he owned assets and owed debts of about the same amount, he didn’t have enough readily available cash. He was also struggling with health problems, including dementia, which made it impossible for him to continue touring. To pay off his debts, he sold his house in Florida.

Mick Fleetwood

Despite the huge popularity of Fleetwood Mac’s ‘Rumours’ album, drummer Mick Fleetwood declared bankruptcy in 1984. He explained that a serious cocaine addiction and poor decisions with property investments led to his financial difficulties. Fleetwood confessed to spending a lot of money on drugs and not properly overseeing his finances. He has since gotten better and still performs with the band.

T-Pain

As a huge fan of T-Pain, I was really surprised to hear about his financial struggles. Apparently, he lost around forty million dollars – a crazy amount! He confessed to going a bit overboard with spending, buying things like a Bugatti without fully thinking about the taxes he’d owe. It got so bad he even had to borrow money to feed his kids, which is heartbreaking. Thankfully, he turned things around. He really learned how to manage his money and has successfully rebuilt his wealth by staying independent and doing things his own way. It’s inspiring to see him bounce back!

Brendan Fraser

Brendan Fraser, known for his role in ‘The Mummy’, asked a court to lower his alimony payments in 2013 because he was struggling financially. He was paying $900,000 annually but had been experiencing a slowdown in his acting work. Injuries sustained while doing his own stunts also made it difficult for him to find roles. Recently, Fraser has seen a significant career resurgence, culminating in an Academy Award win.

Lindsay Lohan

In 2012, the former child star faced serious money problems when the IRS took control of her bank accounts due to over $200,000 in unpaid taxes. It was difficult for her to find work because of insurance issues. Actor Charlie Sheen reportedly helped by giving her $100,000 towards the debt. She later moved to Dubai and was able to get her life and finances back on track.

Michael Vick

In 2008, the NFL quarterback faced severe financial hardship and filed for bankruptcy while in prison for dog fighting. This led to the loss of his lucrative contracts with the Atlanta Falcons and all of his endorsement deals. At the time, he owed around twenty million dollars and wasn’t earning any income. Later, he returned to professional football and successfully repaid most of what he owed.

Dorothy Hamill

In 1996, the Olympic figure skating champion faced financial difficulties and filed for bankruptcy after a business deal went wrong. She had bought the Ice Capades hoping to bring the ice show back to popularity, but the venture ended up costing her all of her savings. Ultimately, she had to sell the company and declare bankruptcy to safeguard what money she had left. Despite this, she remains a popular and respected figure in the world of figure skating.

Sheryl Swoopes

Often compared to Michael Jordan, the WNBA star faced serious financial difficulties and filed for bankruptcy in 2004. She owed $700,000 but had very few assets to cover it. She attributed her financial problems to poor advice from her representatives and high legal fees. Fortunately, she later turned things around and became a coach.

Fantasia Barrino

I’ve always admired Fantasia Barrino, but it’s heartbreaking to learn about the struggles she faced after winning ‘American Idol’. It seems she was carrying the weight of her whole family financially, which must have been incredibly stressful. On top of that, she even had a legal battle with her father over her memoir. Thankfully, she’s incredibly talented and has worked so hard on Broadway and with her music to get back on her feet. It’s inspiring to see her overcome those challenges and continue to shine.

We’re curious – which celebrity bankruptcy or financial downfall shocked you the most? Tell us in the comments!

2025-12-19 01:52