These Celebrities Went Bankrupt!

So I guess it’s not that far-fetched to say that even the rich struggle. Bankruptcy is a financial nightmare that can easily affect anyone, even the rich and famous. Even if they’re well-known for their lavish lifestyles and staggering earnings, plenty of celebrities faced hefty financial difficulties, with many having no other option than filing for bankruptcy.

This quite unfortunate turn of events can also highlight the hidden financial struggles behind glamour and fame, where mismanagement, poor investments, and excessive spending can rapidly erode even the widest pockets. So, from Oscar-winning actors and singers all the way to rappers and entrepreneurs, here’s a list of celebrities who had to face a daunting reality in the most recent years:

Mike Tyson

The famous boxer decided to file for bankruptcy in 2003, after earning over $300 million throughout his career. His financial downfall was caused by a combination of legal issues, extravagant spending, and poor financial decisions.

Even if he had quite a list of impressive earnings, Tyson’s lavish lifestyle, which also included expensive homes, cars, exotic pets, and a large entourage, rapidly drained his fortune. He had $23 million in debt. Tyson also had to face multiple legal battles and costly divorce settlements that would have further exacerbated his financial issues.

Toni Braxton

Toni Braxton, a beloved award-winning R&B singer known for her hits like “Un-Break My Heart” and “Hit the Freeway”, filed for bankruptcy twice. The first time she did so was in 1998, and again in 2010. Braxton’s financial struggles were mainly attributed to health issues, which also impacted her earning potential and led to hefty medical bills.

According to a renowned law firm, Braxton’s outstanding debts reached a total of $50 million. Even if she hit success quite rapidly in the music industry, she had to undergo plenty of disputes with her record label and poor financial management, which further complicated her financial situation.

Nicolas Cage

Even if he is to this day, one of the most famous actors in the world, Nicolas Cage had to deal with deep financial issues back in 2009. Moreover, the actor’s financial woes were totally driven by his extravagant spending on some items like private islands, exotic animals, and of course, rare artifacts (because why not) which eventually led to the enormous amount of debt.

He was well-known for his lavish spending habits, combined with a wide series of tax issues. Those combined, he found himself forced to sell many of the assets and drastically downsize his lifestyle.

In fact, at one point, Cage admitted he had to take on “crummy” acting roles that he didn’t feel like doing, just because he needed to pay off his debts. The Academy Award-winning actor is well-known for films such as “Leaving Las Vegas”, “Face/Off”, and “National Treasure.”

50 Cent

50 Cent, by his real name, Curtis James Jackson III, is a famous rapper, actor, and entrepreneur. However, despite having successful careers in both the music industry and business, 50 Cent still filed for bankruptcy in 2015, after facing legal judgments that amounted to millions of dollars.

His financial issues were exacerbated by lavish spending and costly lawsuits, which ultimately spurred Jackson to file for bankruptcy as a way to manage the amount of debt he had to pay. Ever since, 50 Cent had to diversify his career, becoming an executive producer and actor on the hit TV show “Power” and its spin-offs. He also had many ventures and business endeavors, including partnerships and real estate investments.

Cyndi Lauper

Cyndi Lauper, a singer, and actress well-known for chart-topping hits such as “Girls Just Want To Have Fun,” “Time After Time,” and “What’s Going On”, faced a lot of financial turmoil very early on in her career.

Before she hit fame, Lauper filed for bankruptcy in 1981, after a difficult breakup with her…band, Blue Angel, in which the manager reportedly sued her for a breach of contract. The dissolution of the band and subsequent career setbacks made her struggle financially for several years.

However, Lauper, eventually overcame the financial hurdles, especially since her solo career flourished soon after that, bringing her much of the success and recognition that she still has to this day.

Teresa Giudice

The reality TV star, well-known for her role in “The Real Housewives of New Jersey”, decided to file for bankruptcy in 2009. After she and her ex-husband Giuseppe “Joe” were found guilty of fraud, they were forced to pour sizable funds toward restitution and other legal fees.

All their fraudulent activities, combined with a very lavish lifestyle, resulted in an overwhelming debt that the family simply couldn’t manage. Ever since then, Giudice has worked to rebuild her life and finances by taking on different jobs, returning to television, and collaborating with her now-husband Luis Ruelas.

Stephen Baldwin

Stephen Baldwin is famous for starring in films like “The Usual Suspects”, and also for being part of the famous Baldwin family. However, he is no stranger to having money issues. After filing for bankruptcy in 2009, Baldwin’s financial issues, which mainly stemmed from unpaid taxes and mortgage payments, led to the foreclosure of his home.

Poor financial management combined with the failure to pay taxes also contributed to his financial collapse. Nowadays, Baldwin remains active in the entertainment industry, but still keeps a lower profile, especially compared to his earlier years. Maybe Baldwin’s super-successful daughter and son-in-law might help him out, who knows?

Gary Busey

Gary Busey, known for his roles in “The Buddy Holly Story”, or “Lethal Weapon,” had to file for bankruptcy back in 2012, after claiming over $500,000 in debt. Busey’s financial issues were mainly due to mounting medical bills and poor financial decisions.

A serious motorcycle accident, which unfortunately led to a serious brain injury, coupled with other health issues, left him with sky-high medical expenses and inconsistent work opportunities, as he stated at the time. Ever since then, Busey appeared in various television shows and movies, including popular reality TV shows such as “Celebrity Apprentice” or “Dancing with the Stars.”

Michael Jackson

Even if the King of Pop never formally filed for bankruptcy, he still had to face severe financial distress before he abruptly passed away in 2009. Even if he earned a huge amount of money, his ongoing extravagant lifestyle, legal issues, and expensive habits led to massive debt – to the tune of $400 million to $500 million.

Lavish spending on keeping Neverland Ranch and other ongoing legal issues drained even more his already scarce financial resources.

David Cassidy

Well-known for his role in “The Partridge Family,” Cassidy decided to file for bankruptcy in 2015 because of mounting debt that reached $10 million. The former actor and singer, who was once known as a heartthrob, attributed his financial woes to health issues and declining career opportunities. Moreover, his financial troubles were even more exacerbated by alcoholism, medical expenses, and plenty of failed marriages.

Tia Carrere

Tia Carrere, an actress and singer well-known for roles like “Wayne’s World,” “General Hospital,”, and of course, for voicing Nani in “Lilo and Stitch,” decided to file for Chapter 11 bankruptcy in March 1986.

Even if Carrere claimed her financial difficulties stemmed from a series of legal issues and a decline in acting opportunities, some think she filed for bankruptcy as an attempt to get out of her contract with “General Hospital,” just so she could star in another show.

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