Bankruptcy can happen to anyone — even billionaires. The news is full of former high-flying celebrities whose careers have tanked, or they made unwise investments. Filing for bankruptcy isn’t a prison sentence. You’ll see a multitude of bankrupt celebrities, movie stars, musicians, and athletes.
Some celebrities of the past who went bankrupt include singer and actress Debbie Reynolds, rock star Andy Gibb, founder of Penthouse magazine Bob Guccione, and actor Burt Reynolds.
Current Crop of Celebrities Who Lost It All
It’s fun to speculate about other people’s financial problems, but don’t get too carried away. Anyone can lose it all, but some make modest or spectacular comebacks. Most people with a BA degree earn up to $2 million over their careers, but that’s just pocket change to celebrities who earn 20 times that amount. Some fairly current celebrities that went bankrupt include the following superstars.
1. Donald Trump
Billionaire and former president Donald Trump serves as a great example of someone who went bankrupt but made a comeback. In fact, Trump-owned businesses went bankrupt six times during the years between 1991 and 2009.
The entrepreneur with a controversial hair style seemed to use bankruptcy as a business tactic and recovered what he lost and more.
2. Lenny Dykstra
In 2008, major league baseball star Lenny Dykstra seemed to have it all. At one time Dykstra listed his net worth at $58 million. He owned a website for investing ideas and a magazine promoting high-end lifestyles for athletes.
Unfortunately, he claimed to be a victim of mortgage fraud in the 2008-2009 financial crisis, though he was known for extravagant spending and never wearing the same designer suit twice. He was forced to sell his Thousand Oaks mansion during bankruptcy proceedings.
3. Mike Tyson
Celebrity athlete Mike Tyson was regarded as one of the top boxers in the world. He earned the WBC heavyweight title shortly after his 20th birthday, and his impressive record of winning 26 out of or 28 fights by knockouts remains tough to beat considering the increased safety awareness of professional boxing.
He earned about $400 million during his 18 years of boxing, but the money disappeared because of his lifestyle, famous legal troubles, and the sexual assault case that landed him in prison.
4. 50 Cent
Curtis James Jackson III, also known as 50 Cent, made a fortune on the hip-hop scene because of his strong crossover appeal and fascinating personal history. He sold drugs and suffered multiple bullet wounds. He also earned multiple millions of dollars, 15 Billboard awards, and a Grammy. He once ranked as the second wealthiest hip-hop artist behind Jay-Z.
Unfortunately, he made bad investments and supported a small army of bodyguards, hangers-on, relatives, and friends. His music sales tanked in the middle 2000s, and he continued to spend money on Rolls Royce cars, women, friends, and mansions. He also lost money in multiple lawsuits for self-inflicted problems — such as making and posting a sex tape featuring a rival rapper’s girlfriend. In 2015, he was forced to declare bankruptcy, listing $20 million in debts against $15 million in assets.
5. Nicholas Cage
Actor Nicholas Cage had a successful acting career, but he loved to accumulate extravagant things and spend beyond his means. Cage earned $40 million in 2009 alone. He then went on to buy jets, mansions, and every expensive thing imaginable. Cage wound up with over $14 million of debt when he declared bankruptcy.
Unfortunately, Cage suffered for his spending habits, problems with the IRS, and a financial advisor that he sued for negligence and fraud. Cage is working on his financial problems and is currently trying to liquidate properties that include an island in the Bahamas and a chalet in Aspen, Colorado.
Believe It or Not, Bankruptcy Can Happen to Anyone
Your favorite celebrities may rank among those who gradually or suddenly went broke. They make bad investments, spend lavishly on plastic surgery, and squander money on things most people don’t understand. Many regular people do the same thing on a smaller scale, and filing for bankruptcy could be your best course of action. Getting a good bankruptcy attorney is the first step to recovering from your losses.
