It seems as though all actors, musicians, and all kinds of celebrities are fabulously wealthy. And, well, for the most part that seems to be true. But it doesn’t matter how much money you have, you can always lose it all. Especially if you’re not smart with it. Here are some celebrities that made a ton of money, only to go broke.
If you were to look up Nicolas Cage’s spending history, you would think it was fake. He’s bought countless mansions, castles, jets, yachts, cars, and even exotic pets with the money he’s made from his career. However, that money still was too much. Cage owes the government $14 million in taxes. That probably explains why it seems that he’s just been appearing in anything as of late.
Allen Iverson was nicknamed “The Answer” when he first entered the NBA. But he never actually won an NBA championship. Even so, he’s recognized as one of the best point guards to have been on the court and was earning $20 million per season. Unfortunately, he spent all of that money. His massive entourage and frequent legal troubles had him spending far more than he was making every month. That would be a $62,000 monthly paycheck in comparison to #360,000 expenses.
Lauryn Hill ended up spending three months in prison after failing to pay taxes on $1.8 million she had earned between 2005 and 2007. She had told the judge that she lives a fairly modest lifestyle relative to how many albums she’s sold. That didn’t stop her from going to prison though. The way she lived wasn’t really the issue.
Chris Tucker was once one of the highest-paid actors in Hollywood. Unfortunately, his frivolous spending led to him owing the IRS $11 million in back taxes. He had to sell three mansions just to pay it back. No reason for him to have so many to begin with.
Dionne Warwick spent 50 years in the music industry, selling 100 million albums worldwide. Not only that, but she’s wrote two children’s books and a bestselling autobiography, as well as creating her own fragrance line. Yet, despite all her successes, she still couldn’t manage her money well enough. She declared Chapter 7 bankruptcy after owing more than $10.7 million to creditors.
Stanley Kirk Burrell, better known by his stage name MC Hammer, is really a good example of what not to do with your hard-earned cash. He bought a $30 million mansion after only grossing $33 million in a fiscal year. Looks like he didn’t consider maintenance or the potential depreciation of that house.
Mike Tyson was a formidable boxer, known to be one of the best. His career helped him earn $400 million. But it seems as though he squandered it all. IN 2003, he filed for bankruptcy, being $50 million. He’s since made several appearance on television and film, toured a one-man show, and had his own cartoon. That helped pull him out of the money pit, as he’s reportedly debt-free now.
David Adkins, best known by his stage name of Sinbad, doesn’t blame wild spending for the loss of his fortune. He blames it on bad investments. Well, those bad investments were on shopping malls and other strange things. It’s not too surprising that he ended up owing more than $8 million in back taxes.
Toni Braxton’s had to file for bankruptcy not once, but twice. The R&B singer has sold 40 million albums worldwide, but her contract was a bit one-sided and forced her to file for the first time in 1998. The second time was even more out of her control. She was diagnosed with lupus and forced to move out of her Las Vegas residency. Things have been looking up for Braxton, though. She was on a reality TV show, released a new album, performed on Broadway, and published her own memoir.
Over his 20-year career, Evander Holyfield became a heavyweight champ with more than $200 million to his name. But that amount of money can’t stand up to a lifestyle of lavish overspending. He had to sell a 109-room mansion for only $7.5 million to help pay off the $14 million he owed JP Morgan Chase.
Lindsay Lohan was once a famous child and teen star. But 2012 was a rough year for her. The IRS froze Lohan’s accounts due to the $234,000 she owed in back taxes. She was struggling even after receiving a loan of $100,000 from Charlie Sheen.
Willie Nelson had to file for bankruptcy in 1990, owing $16 million in back taxes. To help pay it off, he actually released a new album, The IRS Tapes: Who’ll Buy My Memories?, with all the money going to the government. This seemed to have helped, as he paid of his debt in 1993.
Court documents seem to state that Dennis Rodman, former NBA star, has too little money to pay the child support he owes his third wife. That would. be $800,000. He’s also been struggling with an alcohol addiction, looking for held on Celebrity Rehab with Dr. Drew.
Brendan Fraser’s tastes weren’t that expensive relative to his fame. He was stated to have made $200,000 in a month, but still needed to file for bankruptcy. There was just too much he needed to pay for, including his manager fees and child support payments, which were over $75,000 a month. Hopefully he doesn’t have to worry about his financial woes nearly as much anymore.
Wesley Snipes was one of the biggest action stars of the 90s, making bank off of the Blade films. However, what happened to all of his money is just between Snipes and his lawyers. He was indicted by the IRS for tax evasion and spent three years in prison.
NFL quarterbacks (grown men) feared him, and he was voted into the Hall of Fame in the first year he was eligible. But what Warren Sapp is also remembered for is how poorly he managed his money. After filing for bankruptcy, court documents revealed that with only $6.45 million in assets, Sapp owed creditors $6.7 million. Some of those assets included a $1,200 lion-skin rug and a shoe collection worth $6,500.
Tionne “T-Boz” Watkins
The members of the music group TLC had to file for Chapter 11 bankruptcy in 1995. But Tionne “T-Boz” Watkins found herself in court again in 2011. She had been living off of royalties when she suddenly found herself needing to pay medical bills for a brain tumor and sickle cell anemia treatments. She recently attempted to file again, but the judge felt she hadn’t made any attempt to settle her debts in the first place.
Terrell Owens was once considered one of the greatest wide receivers in the NFL. His career with multiple teams earned him over $70 million. Yet, he has almost none of that money left. He’s been forced to sell several high-priced homes under market value to just get by. And he’s also shelling out $50,000 a month in child support to four different women. His financial woes were so bad he tried to get back into the NFL, but with no success.
Larry King was a household name in America, and, prior to his death in 2021, he was doing very well financially. Unfortunately, he had some financial troubles in the 70s in relation to alimony payments. He had been married and divorced multiple times, and his lucrative job as a talk show host just wasn’t making him enough at the time.
At the height of his career, T-Pain had $40 million in his bank account. But he had poor spending habits and made bad investments. That led him down a path of financial instability. He even reached a point where he had to borrow money to buy his kids a meal from Burger King. He’s doing much better nowadays and has since learned to spend his money more wisely.
Meatloaf was well-known for his singing prowess and his song “I Would Do Anything For Love”. Unfortunately for him, he neglected to adequately credit his co-writer on the creation of the song. And that led to him getting sued for all his cash in the 80s. Since then, he decided to just write all of his own music in order to avoid any future legal troubles.
Pamela Anderson became a big star because of her role as C.J. Parker in the 90s Baywatch series. But her big paycheck led to unnecessary spending. She paid for things such as lavish parties, cosmetic surgery, and a really nice house. Eventually, the IRS realized that she hadn’t been paying her taxes and she was left in debt.
Aaron Carter made a bunch of big songs in the early 2000s, but his fame and money didn’t last. In 2016, he told Us Weekly that he had no savings and was $100,000. He made a new album in 2018, likely to help pay off his debts.
50 Cent seemed to have disappeared from the music world since 2007. Turns out, he’s just seriously in debt. In 2015, he reportedly owed $32.5 million in lawsuits and unpaid child support. Eventually, he filed for bankruptcy in 2016.
Michael Jackson passed away in 2009 at age 50. He didn’t leave much behind, however, as before that he ended up getting several millions of dollars in debt. His home by itself cost $10 million a year to maintain. And the $25 million loan he took out for Neverland Ranch didn’t help. He couldn’t pay it back and had to throw in the towel in 2007.