From Hero To Zero: Celebrities Who’ve Gone Bankrupt

Although many celebrities seem to be on top of the world during their time as superstars, many of them struggle to maintain their finances while living the expensive lifestyle.

Celebrities have shown us no matter how much money you’ve made, many people have an easier time losing it than they did making it.

Although people like M.C. Hammer and Mike Tyson are well known, there are many celebrities who have gone bankrupt that may surprise you, including a legendary soul singer and a real estate mogul who was in debt for $900 Million dollars.

So who are they? Click the page #’s below to hear the stories of celebrities who were down to 3 digits in their bank accounts.

Toni Braxton

Toni Braxton sold over 15 million albums in the years leading up to her 1998 filing for bankruptcy and some believe she filed so she could get out of her recording contract with record label LaFace.

When she filed, Braxton was $3.9 million in debt and all of her household possessions, including the two Grammys she was awarded in 1997 were priced to sell so she could pay off her creditors.

Despite her conflict with her label, she signed a new contract in 1999 worth $25 million with them.

George Clinton

George Clinton has been called one of the most important innovators of funk music and was prevented from profiting from the songs he wrote between 1976 and 1983.

This is because when he filed for bankruptcy in 1984, he didn’t disclose them as a source of possible future income. It’s estimated that he’s losing out on royalties in the ballpark of $100 million!

George Clinton is a prime example of how one wrong move can make you a Multi-millionaire or bankrupt.

Marvin Gaye

Marvin Gaye had to file for bankruptcy in 1976 after a court ruling promised the $600,000 in royalties from his next album to his ex-wife to make up for overdue alimony payments.

He moved to Europe in 1981 and lived out a tumultuous remaining three years until his father shot him to death in 1984.

Although Marvin Gaye may not have mad bad investments or anything financially wrong, the sad truth is sometimes you don’t have to.

Archie Griffin

While most Heisman winners go on to have NFL careers or a career as a sports analyst, one of the greatest to play college football had a different route.

Archie Griffin is college football’s only two-time Heisman trophy winner and played for Ohio State University from 1972-1975.

Unfortunately, he had to file for bankruptcy in 1981 after an investment in six athletic shoe stores failed and caused him to have debts of $519,568.

M.C. Hammer

MC Hammer is the prime example usually used in Hip-Hop for rappers who have lost it all, after heading to bankruptcy court in 1996 $13.7 million in debt.

Hammer let his quick rise to fame encourage a new and lavish lifestyle like a $30 million mansion and a $500,000-a-month payroll.

However, Hammer is back with a label and thanks to his reality show, Hammer is trying to work his way back to the top again.

Larry King

Although many know Larry as one of the top Journalist of all time, many do not know that King almost never got to be the face of prime-time interviewing.

He was in debt $352,000, charged with grand larceny and accused of stealing $5,000 from a business partner.

The charges were dropped but he struggled to get back on his feet and ended up claiming bankruptcy in 1978

Suge Knight

Suge Knight filed for bankruptcy in 2006 and had $11 dollars in his bank account at the time.

Lydia Harris was suing him for $107 million because she claimed to have been cheated out of a 50% stake in Death Row Records even though Knight claims they settled the matter for $1 million.

However, with Suge in and out of trouble with law, don’t think that those lawyer fees will allow Suge to get back on his feet quickly.

Will Smith

Although Will Smith has always seemed to have is name in lights, Will sacrificed a lot to get to where he is today.

Smith was nearly bankrupt in 1990 when the NBC television network signed him to a contract and built a sitcom, The Fresh Prince of Bel-Air, around him.

The show was successful and began his acting career. Smith set for himself the goal of becoming “the biggest movie star in the world,” studying box office successes’ common characteristics.

Sheryl Swoopes

Swoopes was at one point the face of Women’s professional basketball when the WNBA first made its debut in the late 90’s early 00’s.

Sheryl Swoopes, a three-time Olympic gold medalist and three-time MVP of the WNBA, filed for bankruptcy in 2004 reportedly owing $711,050.

She blamed mismanagement of her money as the cause.

Donald Trump

Although most people have a hard time getting back on their feet after filing bankruptcy, Donald Trump is easily the exception.

Donald Trump found himself $900 million in debt in 1990 and lost a lot of his business ventures but somehow restructured his debt to be back on top running a billion-dollar empire.

Now with more property and reality shows, Trump has shown that he is prepared for divorces, lawsuits, or any other financial woes that are thrown at him.

Mike Tyson

Mike Tyson earned a reported $300 million in his boxing career but it somehow wasn’t enough for his lavish lifestyle.

He filed for bankruptcy in 2003 owing a debt of $27 million. Tyson’s lifestyle cost $400,000 a month to maintain and during his divorce, he paid $9 million in legal fees alone.

Mike has been through it all, and we are glad to see him getting back on his feet after the hardship he has experienced.