10 Celebrities Who Declared Bankruptcy After Losing Everything They Had

These celebrities have had to file for bankruptcy due to one issue or the other

Maryjane

• Published in Film & TV
• February 18, 2023

Celebrities can become wealthy, but that doesn't guarantee that they are wise with money or that they will always have money available to them. Numerous well-known celebrities have had to file for bankruptcy.

Despite the many motivational tales of famous people who overcame adversity and found success, the contrary can also occur. From athletes to movie stars to artists, fame, and fortune can occasionally lead to reckless spending. 

We aspire to live wealthy lives like those of celebrities. They are well-known, and they have the potential to make enormous sums of money from their performances or even simply their mere presence.

This enables them to own opulent homes, high-end products from renowned brands, and even priceless objects. Not all celebrities, however, are able to maintain their health or wealth.

In truth, several of the biggest celebrities battled bankruptcy for many reasons, from ruinous spending sprees to illness or even a pricy divorce. Most of them are unable to recover after becoming mired in debt fully.

This page includes ten instances of famous people who completely lost everything. They previously enjoyed wealth and glory but have now lost everything.

So go ahead and check them all out.

The greatest song of all time, "Unbreak My Heart," by Toni Braxton, made her a star

Over 70 million recordings have been sold globally by her. Unfortunately, the singer has already declared bankruptcy twice.

Braxton actually received very little of the millions that her song brought in. She found herself in a bad situation and had to apply for bankruptcy.

Although she was able to recover from that situation, in 2010 her Vegas residency had to be postponed because of health issues, and she ultimately had to file for bankruptcy once more. But like the Phoenix, she was able to rise from her financial ashes, and she currently produces and stars in the well-liked reality series "Braxton Family Values."

Formerly, Gary Busey was a well-known Hollywood star

For his crucial performance in the 1978 biopic "The Buddy Holly Story," for which he was nominated for an Academy Award, the Texas actor earned enormous media attention. Later, he appeared in commercially successful blockbusters like "Lethal Weapon" and "Point Break."

Busey sustained a persistent brain injury as a result of a catastrophic motorcycle accident he was involved in in 1988. As a result, his financial situation deteriorated.

The once-bankable Hollywood star lost both his on- and off-camera appeal. Busey was compelled to file for Chapter 7 bankruptcy in 2012 because not enough money was coming in and the majority of his money had vanished.

When Aaron Carter was only 7 years old, the popular song "Candy" solidified his renown and brought him money

However, a slew of drug addiction scandals completely destroy his anticipated career as a celebrity. Before turning 18, he had nearly $200 million, but without a hit song or an album that sold well, he filed for bankruptcy in 2013.

He said that his parents squandered every penny he made, leaving him with $4 million in unpaid taxes after he became an adult. He had to file for bankruptcy as a result to settle the majority of his debt.

He has now paid off all of his debt and purchased a home in 2019.

Fantasia rose to prominence internationally after winning "American Idol" season 3 in 2004

Her first single, "I Believe," rapidly shot to the top of the charts in the US and Canada, earning her debut album a platinum certification. Fantasia's life first seemed to be going well, but as the sole supporter of her mother, daughter, siblings, and sister as well as a result of the second album's declining sales, she soon found herself in a precarious financial situation.

Her $1,150,000 house was going to be auctioned off to repay a loan. In an interview with Oprah, Fantasia admitted her mistakes and blamed her misfortune on her bad financial judgment and inability to say no.

For more than ten years, MC Hammer gained notoriety as the epitome of the Hollywood "rags to riches and back again" story

After releasing two albums that were only modestly successful, he achieved global fame with his breakthrough single "U Can't Touch This" from his third studio album. At the time, Forbes pegged Hammer's net worth at around $33 million.

Unfortunately, this allegedly instantaneous fortune was swiftly consumed by His extravagant spending, lavish home, and numerous dependents. By 1996, Hammer's musical career was ended, and he owed more than $13 million, leading him to file for Chapter 11 bankruptcy.

The California rapper made a few attempts to get better after his injury, but he never fully healed.

Lil' Kim, known as the "Queen of Rap," is credited with inspiring a generation of rappers and has sold more than 30 million singles worldwide.

The hip-hop phenomenon received a prison sentence in 2005 and experiencing a drop in record sales. She claimed to have $4 million in debt, the most of which was made up of delinquent taxes and mortgage loans, when she filed for bankruptcy in 2018.

In order to settle her debt, the Queen Bee put her $2.3 million home up for auction with a $100 beginning bid. Not a typo, either!

Todd Herzog worked as a flight attendant for SkyWest Airlines, flying all over the country, before being selected for the 15th season of "Survivor."

At the age of 22, he performed on the show as planned and took home the $1 million cash prize and the season title. Herzog achieved success on the big screen, but his entire income was in jeopardy because he struggled with an alcohol use disorder.

Herzog was able to make changes in his life after receiving professional counseling. He has led a relatively calm life with his husband, Jess Hermansen, ever since he became sober.

Burt Reynolds, a well-known Hollywood actor, was a major box office attraction in the late 1970s and early 1980s, but as time passed, he gradually lost his appeal

The actor declared bankruptcy in 1996 as a result of his expensive divorce from Loni Anderson and some poor investment choices. He made a professional return shortly after with "Boogie Nights," which earned him a Golden Globe and an Oscar nomination.

By 2014, Reynolds was auctioning off personal items and souvenirs, which caused bankruptcy rumors to resurface. Reynolds remained in his Florida home until his demise in 2018.

Since making his debut in 2005, T-Pain has acquired a net worth of over $40 million and a long list of hit singles

Instead of using his money wisely, he bought a sizable property and a $2.1 million Bugatti, which he ultimately sold for only $800,000. The "Buy You a Drink" singer was forced to file for bankruptcy protection in 2019 after realizing that his bank account had not been "low low low" for too long.

T-Pain won the first season of "The Masked Singer" in the same year, and things currently seem to be going well for him.

Kim Basinger became well-known in Hollywood as a result of her exceptional performances as a femme fatale in the 1980s and 1990s

Her acting career was at its peak, but the actress had a number of setbacks that significantly hurt her financial situation. She invested $20 million in a small Georgian village, which turned out to be a bad investment.

She then backed out of the catastrophic movie "Boxing Helena," for which she was sued and ordered to make millions of dollars in payments to the production firm. She consequently filed for bankruptcy.

The acrimonious divorce from the Oscar-winning actress's marriage to Alec Baldwin is said to have cost her an additional few million dollars. She never really recovered financially.

Even the biggest celebrities struggle with money, despite how dazzling the lives of the rich and famous frequently seem. This list is by no means complete, but it is sufficient to highlight the value of prudent money management, the waste associated with extravagant consumption, and the negative consequences of vices. 

Maryjane