Everyone wants to be a celebrity, right?
With their flashy cars, luxurious vacations, houses the size of hotels and handbags that are more expensive than the average human’s monthly rent, it seems like an impressive lifestyle.
But, celebrities aren’t perfect. And what many people don’t realize is how broke some of our favorite celebrities actually are.
Read on to learn about celebrities who filed bankruptcy- you may even be surprised by a few.
Mike Tyson was one of the most popular boxers of all time. In fact, Tyson was one of the most popular athletes of all time and was once known to have a net worth of over $700 million. But, in 2003, the former heavyweight boxer declared bankruptcy.
Tyson’s luxury spending habits of jewelry, fancy sports cars, flashy parties and even a Siberian tiger led to an impressive debt of $23 million. Along with that, Tyson’s divorce settlement with his ex-wife Monica Turner caused him to fork up a whopping $9 million. Tyson also owed the IRS $13.4 million in taxes and the British government $4 million in taxes.
To top it all off, Tyson’s rape conviction definitely didn’t help his bank account, which also prevented advertisers from working with Tyson after he was released from jail. And finally, when you combine all of these hefty purchases with his diminishing boxing skills, it leaves the former boxer strapped for ways to bring in the impressive income he was once used to.
Despite losing his main fortune, Tyson has recently built up his net worth to $3 million by publishing two books, making multiple television and movie appearances and debuting in a one-man show.
Virtually everyone is familiar with the notorious “Mean Girls”, “Parent Trap” and “Herbie: Fully Loaded” actress who was once on top of the world. But, between her infamous life of partying and legal issues, Lohan might not be as rich as the public once perceived to be.
Lohan has a net worth of just $800,000, which is surprisingly low considering “Mean Girls” has a worldwide gross of over $129 million. Not to mention that, along with acting, Lohan was also an artist, model, fashion designer, entreprenuer and producer. In fact, Lohan is known to have been worth over $30 million when she was 18 years old. So, how did she lose all of her cash?
There is no doubt that Lohan’s luxury spending habits, drug agenda, expensive parties and overdue rehab fees took a direct toll on the actress’s bank account. Not to mention her infamous lifestyle prevented her from landing any extra modeling or acting gigs. But, to top it all off, in 2012, the IRS seized her bank account when she was known to owe over $200,000 in taxes, which caused Lohan’s net worth to plummet.
At the end of the day, Lohan isn’t completely broke. But she might not be spending too much money on handbags and luxury vacations anymore.
Do you remember this heartthrob pop star from the ’90s? Well, he’s nothing to obsess over anymore as his net worth has plummeted to a depressing $400,000.
In 2013, Carter filed for bankruptcy in the state of Florida where he claimed his total assets were worth just slightly over $8,000. His bankruptcy claim also stated that his monthly salary was $2,000 with his monthly spendings at $2,005, which would leave him at a $5 loss per month.
So, how did the once popular pop star, songwriter, actor and dancer go from making over $200 million by the time he turned 18 to virtually broke by the time he was 30?
To start, Carter began raking in the money when he was just seven years old and his parents were his managers. Carter claimed that he used some of his money to purchase a $10 million complex for his family to live in. As opposed to hiring a financial advisor, such as Bonsai Finance, Carter claims his parents didn’t handle his finances as well as they should’ve.
By the time he was 18 years old, the singer-songwriter already had $4 million in tax liens. On top of that, Carter also claims that he should’ve had $20 million in his Coogan Account when he turned 18, but he only had $2 million.
This New York-born rapper tops the list of poorest celebrities with a devastating net worth of negative $10 million. But, with seven studio albums that have sold over 70 million copies, three Grammy awards, an American Music Award and five MTV Music Video Awards, how did the rapper and actor’s finances plummet so low?
In 2013, DMX filed for bankruptcy and claimed that his assets were worth $50,000 with his debts ranging from $1 million to $10 million. Some of this debt is a result of the child support he had to pay for his 15 children.
Along with that, DMX was involved in a multi-year scheme to avoid paying millions of dollars in taxes on his music. In fact, he’s known to have not paid any money to the IRS for some of his songs. This lead the rapper to appear in court in 2017 on 14 accounts of tax fraud, which have totaled to a whopping $1.7 million and lead to a one-year prison sentence.
Because his debt is so steep, DMX has been unable to obtain a passport for years, which prevents him from performing overseas where a lot of his fan base is located. So, if he doesn’t have that money coming in, how could he ever pay off that drastic debt?
Celebrities Who Filed Bankruptcy
It’s so easy to get caught up in the flashy lifestyle of celebrities. But, it turns out that some of our favorite celebrities aren’t so rich after all. They get carried away with their spending habits, misuse their investments and can even waste a lot of money on their addictions.
So, before you go comparing yourself to all of the A-list celebrities on the cover of magazines, remember that it’s easy for stars to blow through millions of dollars and end up broke.
Did you enjoy reading about celebrities who filed bankruptcy? If so, take a look at our celebrity articles for more news and gossip.