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Eric Garcia
Washington Bureau Chief
We often think of celebrities as financially stable people because they live lavish lives and own multiple properties, and while that’s usually true, as the late Notorious B.I.G. famously said, “more money means more problems.”
Unexpected medical bills, legal costs, or simply becoming accustomed to a lifestyle that makes it difficult to back out when times get tough are the biggest reasons celebrities declare bankruptcy.
But it’s important to note that bankruptcy doesn’t mean you’ll be completely bankrupt: According to Experian, bankruptcy is often “used as legal protection against complete financial ruin by providing financial relief in the form of a restructured debt repayment plan or the liquidation of certain assets to repay some of your debts.”
From Michael Jackson to Sharon Stone, we’ve compiled a list of 14 celebrities who lost their fortunes.
1. Michael Jackson
Michael Jackson was over $500 million in debt at the time of his death (Reuters)
In 2004, a few years before Michael Jackson’s premature death at age 50, his financial advisors declared him nearly bankrupt and would not be able to repay a $70 million loan to Bank of America.
Despite his poor financial situation, Jackson reportedly continued to live a lavish lifestyle, spending $2 million a month on new cars and other items.
At the time of his death in 2009, the “Thriller” singer owed more than $500 million to various creditors, court documents revealed.
2. Sharon Stone
Sharon Stone said she was left with “zero money” after suffering a stroke in 2001 (AFP via Getty Images).
Sharon Stone recently revealed that “people took advantage of me” during the years of recovery after suffering a severe stroke in 2002.
“I had saved up $18 million thanks to my success, and then I checked my bank account and it was all gone — my refrigerator, my cell phone, everything was in someone else’s name,” the “Basic Instinct” star told The Hollywood Reporter. “I had zero money.”
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Stone said she was one of the biggest stars of the ’80s and ’90s but was “forgotten” by the industry after having to take a break.
But rather than clinging to “bitterness,” she said, “I now live for joy. I live with purpose.”
3. Drake Bell
Drake Bell files for bankruptcy with $581,000 in debt (Getty Images)
Despite being one of Nickelodeon’s biggest child stars, Drake Bell ended up filing for bankruptcy in 2014. In legal documents filed, the former Drake & Josh cast member claimed he was $581,000 in debt.
After filing for bankruptcy, Bell lost his $2 million Los Angeles home to foreclosure. He put the property up for sale for $1.575 million, according to legal documents obtained by People magazine. In a breakdown of his expenses, Bell said he made $2,820 a month but spent $18,771 in total. He also reportedly owed taxes.
4. Mike Tyson
Mike Tyson made at least $400 million before filing for bankruptcy (Getty Images)
In 2003, The New York Times reported that heavyweight superstar Mike Tyson had officially filed for bankruptcy after years of financial struggles.
Despite making $400 million over two decades, court documents show he was spending $400,000 a month to maintain his lifestyle. Between 1995 and 1997, he spent $9 million on legal fees. At the time of his bankruptcy filing, the former heavyweight champion had debts totaling $27 million.
“Since 1998, I have been in financial difficulty, owing large amounts of money to Showtime, the tax authorities and the litigants,” Tyson said in the affidavit. “Since then, I have been able to repay many of my debts with fight proceeds, various asset sales and litigation recoveries, but I still am unable to pay my bills.”
“I never thought I’d live past my 30s,” Tyson said, speaking about his financial struggles at the 2017 SALT conference.
5. Aaron Carter
Aaron Carter claimed his parents mismanaged their fortunes when he was a child (Fraser Harrison/Getty Images)
Before he even turned 18, Aaron Carter had already earned a reported $200 million from his music career and various acting gigs on TV and Broadway.
However, he later claimed that his parents had mismanaged his finances, leaving him with only $2 million in his bank account, and he also owed $4 million in back taxes. In 2013, he declared bankruptcy, hoping to liquidate.
Carter, who tragically died in 2022 at the age of 34, did not leave a will, so all of his assets likely went to his son, Prince. His net worth at the time of his death was reportedly $400,000.
6. Cyndi Lauper
Before her successful singing career, Cyndi Lauper worked in restaurants and retail to make ends meet (Getty Images)
Cyndi Lauper is one of the music industry’s rags to riches figures. For several years before bursting onto the music scene as a solo artist, the “True Colors” hitmaker was in a band called Blue Angel.
Their debut album was a flop, and Lauper filed for bankruptcy in 1981.
She then took restaurant and retail jobs to make ends meet while continuing to make music. Lauper finally found success with her 1983 album, “She’s So Unusual,” which featured classics such as “Time After Time,” “Girls Just Want to Have Fun,” and “All Through the Night.”
7. Kim Basinger
Kim Basinger faces multimillion-dollar lawsuit after being dropped from ‘Boxing Helena’ (Getty Images)
In 1993, Kim Basinger faced both reputational and financial ruin when she quit her starring role in the romantic thriller Boxing Helena, and Sherilyn Fenn was cast in the lead role.
Main Line Pictures claimed that Basinger’s last-minute withdrawal had cost them approximately $6.4 million in lost ticket sales, and they sued Basinger for breach of contract, ordering him to pay the company $7.4 million to cover the loss of expected income.
Basinger filed for bankruptcy, with her lawyer stating that she “did not have the assets to pay such exorbitant damages.” The litigation lasted a total of four years, but the actress and the production company of My Stepmother Is an Alien eventually settled.
8. Kelly Rutherford
Kelly Rutherford spent a fortune on her pricey custody battle (Getty Images)
Fifteen years ago, Gossip Girl Kelly Rutherford was embroiled in a bitter and costly custody battle with her ex-husband, German entrepreneur Daniel Giersch, over their two children, Hermes and Helena.
In 2013, she declared bankruptcy after spending about $2 million on legal fees.
Looking back on that difficult time years later, Rutherford told People magazine, “Sometimes you just need to retreat and be with your kids and heal and have time for yourself.”
9. Dionne Warwick
Dionne Warwick reportedly owed millions to the IRS before lawsuit was dismissed
Legendary “Walk On By” singer Dionne Warwick filed for bankruptcy in 2013, citing more than $10 million in tax debt dating back to 1991.
“Dionne Warwick has determined that due to several consecutive years of negligence and serious financial mismanagement (from the late ’80s through the mid-’90s), she now needs to file for bankruptcy,” her publicist, Kevin Sasaki, said in a statement.
In his petition, Warwick, a cousin of the late Whitney Houston, claimed he earned $20,950 a month and spent $20,940. Sasaki said Warwick had already paid back the taxes and was only accruing interest and penalties at that point. The case was dismissed in 2019.
10. Francis Ford Coppola
Francis Ford Coppola has filed for bankruptcy at least three times (2024 InVision)
By 1992, Oscar-winning director Francis Ford Coppola had filed for bankruptcy three times in nine years. At the time, a publicist said his financial troubles began with the box-office flop “One from the Heart” in 1981. In the filing, Coppola listed $98 million in liabilities and $53 million in assets.
He’s avoided financial ruin since then, but earlier this year he dropped $120 million on a self-financed blockbuster called “Megalopolis.” It remains to be seen whether Coppola will turn a profit on the movie, but early reviews for the film have been lukewarm.
11. 50 Cent
Several failed investments led to 50 Cent’s financial troubles (Getty Images)
Rapper 50 Cent rose to fame with his aptly named debut album, Get Rich or Die Tryin’, a record so successful that it allowed him to buy the million dollar mansion once owned by Mike Tyson.
The “Candy Shop” artist continued to have success, releasing several records over the years and collectively selling over 30 million copies, but after some poor investment decisions, 50 Cent’s financial troubles came to a head and he filed for bankruptcy in 2015.
Declaring bankruptcy saved him from total financial ruin. “Any businessman would do that right away, before they lose money,” he explained of his decision in 2020, “because it means they have the ability to invest again with peace of mind.” He was able to get a fresh start, and now maintains an estimated net worth of $40 million.
12. David Crosby
David Crosby has been embroiled in a series of legal troubles that have hurt his record sales (Courtesy of The Recording A via Getty Images)
The late David Crosby struggled to make it as a solo artist early in his career in the music industry and was forced into bankruptcy in 1985.
It wasn’t until the ’70s and ’80s, when he became a founding member of The Byrds and later part of the supergroup Crosby, Stills, Nash & Young, that the singer and guitarist began to enjoy a wealthy career.
He also faced financial challenges in the final few years of his life, revealing that his income was hit when COVID-19 prevented him from performing: “I was trying to be grateful that I could still play shows, pay rent and take care of my family. Then COVID came and I couldn’t play shows, and that was it. Now I have no money. I don’t want to lose my house,” he told Guitar World in a 2021 interview. …
13. Toni Braxton
Toni Braxton claims her first recording contract only paid her $1,972 (Getty Images, courtesy of DCP)
After R&B singer Toni Braxton signed her first recording contract, she had just $1,972 left after paying off various fees to her label.
“You get an advance for your next record, and the next one,” she explained in 2015. “So you’re left in debt, in a way.” She declared bankruptcy in 1998.
A decade later, the “UnBreak My Heart” artist suffered a series of health issues, including microvascular angina and a benign breast tumor, forcing her to cancel a string of shows in Las Vegas.
Braxton tried for months to negotiate with creditors to secure a debt repayment plan, but ultimately decided that the best option for her family was to file for bankruptcy a second time in 2010 after their $2.6 million home in Duluth, Georgia, was being foreclosed on.
