Celebrities Who Declared Bankruptcy

Fame often gives the illusion of endless wealth — red carpets, private jets, mansions, and million-dollar contracts. But even the world’s biggest stars can face financial disaster. In fact, many celebrities who once earned tens or even hundreds of millions of dollars eventually found themselves filing for bankruptcy or nearing financial collapse.

In some cases, the downfall was sudden — the result of lawsuits, tax problems, or disastrous investments. For others, it was a slow decline fueled by lifestyle inflation, massive entourages, or poor financial guidance. And while a few stars used bankruptcy as a strategy to reboot and recover, others never regained their former wealth. Below are some of the most well-known celebrities who declared bankruptcy or came shockingly close.

50 Cent

In 2015, Curtis “50 Cent” Jackson stunned the world by filing for Chapter 11 bankruptcy. Once worth close to $100 million, he reported $36 million in debt after costly lawsuits — including a $7 million judgment tied to a leaked video scandal. Through a court-approved repayment plan, 50 Cent paid back around $23 million and emerged financially stable by 2017. His case remains one of the most notable modern celebrity financial resets.

Mike Tyson

Mike Tyson earned more than $400 million during his boxing career — yet lost nearly everything. Lavish mansions, exotic cars, pet tigers, legal fees, and a $9 million divorce settlement drained his fortune. In 2003, Tyson filed for bankruptcy with $23 million in debt, including millions owed in taxes. His story is one of the most famous examples of extreme wealth disappearing almost overnight.

MC Hammer

In 1990, MC Hammer earned a staggering $33 million in a single year, but his expenses outpaced his income. Supporting an entourage of more than 200 people, plus luxury homes and thoroughbred horses, led to massive debt. Hammer filed for bankruptcy in 1996, reporting over $10 million in liabilities. He later said much of his spending was intended to uplift his community — but financially, the damage was done.

Toni Braxton

Despite selling over 67 million records, Toni Braxton filed for bankruptcy twice — first in 1998 and again in 2010. Her second filing came after health issues forced her to cancel a Las Vegas residency, leaving her with debts estimated at up to $50 million. She also lost rights to several hit songs. Braxton eventually rebuilt her finances through touring and reality television.

Kim Basinger

Kim Basinger declared bankruptcy in 1993 after being ordered to pay $8.1 million for withdrawing from the film Boxing Helena. She filed for Chapter 11 protection and later settled for $3.8 million. The setback nearly derailed her acting career — until she made a major comeback with L.A. Confidential, earning an Academy Award.

Cyndi Lauper

Before becoming a pop icon, Cyndi Lauper struggled financially. After her early band Blue Angel collapsed and she was sued by its manager, she filed for bankruptcy in 1981. She took retail jobs to survive — until She’s So Unusual launched her to global stardom two years later.

Larry King

Prior to his decades-long TV success, Larry King faced legal troubles and mounting debt. Accused of misusing $5,000 belonging to a business partner, he filed for bankruptcy in 1978 with $350,000 owed. Ironically, the same year he secured the radio opportunity that led to Larry King Live — turning insolvency into a comeback story.

Francis Ford Coppola

The legendary Godfather director has filed for bankruptcy twice, most famously in 1992 after his film One from the Heart lost millions. The movie generated only $4 million against a budget of $27 million, contributing to an estimated $98 million in liabilities. He later reinvented himself as a successful winemaker and resort entrepreneur — but history repeated itself when he self-financed the film Megalopolis in the 2020s, reportedly leaving him financially strained again.

Curt Schilling

Former MLB pitcher Curt Schilling earned more than $114 million during his career — but lost most of it after investing over $50 million into his failed video game company, 38 Studios. The business collapsed in 2012, and though Schilling didn’t personally file bankruptcy, the financial fallout wiped out his savings, forcing him to sell assets and memorabilia.

Michael Jackson

Despite earning hundreds of millions, Michael Jackson’s spending far exceeded his income — with Neverland Ranch, lavish shopping sprees, and legal battles draining his finances. By 2007, he struggled to pay a $25 million loan, and upon his death in 2009, he was reportedly over $500 million in debt. Jackson never filed for bankruptcy, but he was financially distressed in his final years.

Burt Reynolds

The Hollywood legend filed for bankruptcy in 1996 after a series of poor investments and a costly divorce from Loni Anderson. Reynolds was left with over $10 million in debt, forcing him to sell real estate, cars, and even a private jet. He later returned to acting, using humor and humility to rebuild his public image.

Gary Busey

Gary Busey filed for bankruptcy in 2012, listing under $50,000 in assets and up to $1 million in debt. Years of inconsistent acting income, medical expenses, and tax obligations contributed to the financial decline. Later, Busey secured steady work in reality television.

Gary Coleman

“Diff’rent Strokes” star Gary Coleman earned millions as a child, but financial mismanagement by his parents and advisors left him broke. Coleman filed for bankruptcy in 1999 with $72,000 in debt and spent his later years working various jobs until his death in 2010.

Meat Loaf

After the massive success of Bat Out of Hell, Meat Loaf filed for bankruptcy in 1983 due to legal battles and a commercially disappointing follow-up album. His comeback in the 1990s — including the smash hit “I’d Do Anything for Love” — reestablished his legacy and finances.

Stars Who Nearly Went Broke