Even the most renowned celebrities aren’t immune to financial ruin. It’s a captivating irony within the world of fame: how individuals can rake in tens or even hundreds of millions of dollars in a short span, only to find themselves bankrupt. For some, the downfall is abrupt, triggered by poor investments or costly divorces. Others experience a gradual decline due to misguided financial advice, unpaid taxes, or a lifestyle that exceeds their earnings. The public is fascinated by these stories because they dispel the myth that celebrity status guarantees financial security.

From legendary athletes and music superstars to Academy Award winners and sports icons, the tales of celebrity financial collapse are as compelling as any Hollywood drama. Some were caught off guard by tax issues, legal battles, or mismanaged funds by trusted advisors. Others lived extravagantly, purchasing private islands, castles, and luxury car collections, only to face the harsh reality that even substantial incomes can vanish. While some stars used bankruptcy as a fresh start and managed to recover, others became cautionary examples of how quickly wealth can dissipate.

This collection highlights 15 of the most notable cases of celebrities who faced financial ruin or declared bankruptcy. It also includes those who narrowly avoided filing, thanks to sheer determination, strokes of luck, or assistance from generous friends.

50 Cent

In 2015, rapper Curtis “50 Cent” Jackson surprised many by filing for Chapter 11 bankruptcy. Once estimated to have a net worth close to $100 million, he declared $36 million in debt and less than $20 million in assets. The move followed a series of expensive lawsuits, including a $7 million penalty related to a leaked sex tape. A court-sanctioned plan helped him repay approximately $23 million, allowing him to clear his debts by 2017. His situation serves as a contemporary reminder that even shrewd businesspeople can overreach.

Mike Tyson

Mike Tyson amassed an estimated $400 million during his boxing career but squandered most of it. His wealth was drained by extravagant purchases such as luxury homes, high-end cars, pet tigers, and a $9 million divorce settlement. In 2003, Tyson filed for bankruptcy, revealing $23 million in debt, including $13 million owed to the IRS. Once the most formidable figure in boxing, “Iron Mike” exemplified how lavish spending and poor financial management can deplete even the largest fortunes.

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MC Hammer

MC Hammer, at his zenith in 1990, earned $33 million in a single year. However, he also supported an entourage of over 200 people and splurged on mansions, horses, and sports cars. When his funds ran out, Hammer filed for bankruptcy in 1996, listing about $1 million in assets against more than $10 million in debt. Although he later stated that much of his wealth was used to aid his community, the outcome was the same: a vanished fortune and a profound financial reset.

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Toni Braxton

Despite selling over 67 million records, Toni Braxton filed for bankruptcy twice—first in 1998, then again in 2010 after health issues canceled her Las Vegas residency. Her second filing listed debts of up to $50 million. Braxton lost the rights to several of her hit songs, including “You’re Makin’ Me High,” before rebuilding her career through touring and reality television.

Kim Basinger

Oscar winner Kim Basinger filed for bankruptcy in 1993 after being hit with an $8.1 million judgment for backing out of the film “Boxing Helena.” Facing financial ruin, she sought Chapter 11 protection and later settled the case for $3.8 million. The bankruptcy nearly ended her career, but Basinger rebounded with “L.A. Confidential” four years later—and an Academy Award.

Cyndi Lauper

Before becoming a pop icon, Cyndi Lauper was broke. Her early band, Blue Angel, flopped, and after being sued by their manager, she filed for bankruptcy in 1981, unable to pay roughly $80,000 in debt. Lauper worked retail and sang in restaurants to survive until her solo debut, “She’s So Unusual,” turned her into a superstar two years later.

Larry King

Before his decades-long run on CNN, Larry King was accused of misusing $5,000 from a business partner—a scandal that wrecked his finances. By 1978, he owed $350,000 and filed for bankruptcy. Ironically, that same year, he landed a new radio gig that evolved into “Larry King Live,” making him one of TV’s most successful hosts.

Francis Ford Coppola

The “Godfather” director filed for bankruptcy twice, most notably in 1992 after his passion project “One from the Heart” flopped. The film cost $27 million but earned only $4 million, leaving Coppola with $98 million in liabilities. He later reinvented himself as a winemaker and hotelier, proving even Hollywood legends can start over. Unfortunately, Hollywood legends can also make the same mistakes again, as Francis did with his passion project “Megalopolis.” Francis infamously sold off his wineries and other businesses to self-finance the project. He spent $120 million, mostly of his own money. The film made $14 million and rendered Francis Ford Coppola “broke” and forced to sell belongings to raise cash in late 2025.

Curt Schilling

Curt Schilling earned $114 million during his career but lost his fortune after investing more than $50 million into a failed video game company, 38 Studios. When the company collapsed in 2012, Schilling was forced to sell his home and memorabilia, including his “bloody sock.” He didn’t personally file bankruptcy, but the company’s collapse wiped him out financially.

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Michael Jackson

Despite earning hundreds of millions, Michael Jackson spent far more—on Neverland Ranch, art, and endless luxury. By 2007, he was unable to repay a $25 million loan and was reportedly $500 million in debt when he died in 2009. While he never formally declared bankruptcy, his lavish lifestyle and lawsuits left him “technically bankrupt” in his final years.

Burt Reynolds

In 1996, Burt Reynolds filed for bankruptcy after a string of bad investments and an expensive divorce from Loni Anderson. He was over $10 million in debt, forced to sell homes, cars, and even a private jet. Reynolds later joked that his biggest regret was “not spending even more money,” turning his downfall into part of his legend.

Gary Busey

Gary Busey filed for Chapter 7 bankruptcy in 2012, listing less than $50,000 in assets and up to $1 million in debts. Years of inconsistent work, medical bills, and back taxes had caught up to him. He later found a second act in reality TV, making light of his struggles on shows like “Celebrity Apprentice.”

Gary Coleman

The “Diff’rent Strokes” star earned millions as a child actor but sued his parents for mismanaging his trust fund. By 1999, he filed for Chapter 7 bankruptcy with $72,000 in debt. Gary Coleman never recovered financially, working odd jobs and making occasional TV appearances until his death in 2010.

Meat Loaf

After his 1977 megahit “Bat Out of Hell,” Meat Loaf went bankrupt in 1983 following lawsuits and a flop follow-up album. He later made a triumphant comeback in the 1990s with “Bat Out of Hell II” and “I’d Do Anything for Love,” proving bankruptcy doesn’t have to end a career.

Honorable Mentions: Celebrities Who Came Close

Nicolas Cage burned through $150 million buying castles, islands, and exotic pets before owing $14 million in back taxes. He avoided bankruptcy by working nonstop in dozens of films.

Willie Nelson owed the IRS $32 million in back taxes in 1990, prompting asset seizures and auctions. He refused to file bankruptcy, instead recording “The IRS Tapes: Who’ll Buy My Memories?” to pay off the debt.

Sarah Ferguson, Duchess of York faced up to $8 million in debt by 2010 and was caught offering to sell access to Prince Andrew. With help from wealthy friends, she narrowly avoided bankruptcy and later rebuilt her image through media projects.