11 Aug Celebrities That Have Filed for Bankruptcy Protection
Salaciously reported, the media feasts on the news of celebrities filing for bankruptcy. While filing for bankruptcy has developed a negative stigma associated with it, taking such an action doesn’t necessarily mean a person completely has no money or that it’s the wrong thing to do. There are several financially beneficial reasons for doing so. Not to mention, you probably personally know more people who have filed for bankruptcy than you even realize. It’s not as uncommon as you may believe! Check out this list of celebrities that have filed for bankruptcy; you might be surprised to see some of your favorite stars and entertainers who have made the list!
1) Mike Tyson
Due to marital issues, substance abuse, and poor money choices, famous boxer Mike Tyson was forced to file for bankruptcy back in 2003. Even though he made more than $400 million in his boxing career, Tyson had a total of $27 million in debt when he filed.
2) Toni Braxton
The famous singer and now reality television star Toni Braxton was forced to join the club of bankrupt celebrities. Not once, but on multiple occasions. Reportedly owing about $50 million, the Grammy winner fell victim to music industry woes and getting the short end of the financial stick when it came to getting compensated for the work she has put in.
3) Larry King
Legendary CNN host and interviewer Larry King has come a long way from his financially difficult past. Filing for bankruptcy twice in the 70s, the former newspaper editor somehow racked up a $300 million plus debt right before landing his iconic show. In King’s case, his humble beginnings ended up leading to a triumphantly successful career. It just goes to show that bankruptcy isn’t an end-all, be-all situation.
4) MC Hammer
This former artist is tragically known for filing for bankruptcy. Matter of fact, MC Hammer can probably be assigned the poster child of bankrupt celebrities. Reason being? Poor money management due to letting fame get to his head. Yes, $30 million worth of poor money management decisions. MC Hammer frivolously spent a monthly $500,000 fee for keeping up with his monumental entourage and staff, which totaled over 200 people.
5) Janice Dickinson
Compared to a lot of other celebrities on this list, Janice Dickinson’s bankruptcy debt looks amazingly measly. The famous model racked up only one million in debt, which prompted her 2013 filing. While the normal, everyday person could do a lot with a million dollars, for a star, Dickinson’s debt almost makes you scratch your head. Apparently, a California judge thought the same and decided to discharge her small debt.
6) Warren Sapp
NFL player Warren Sapp filed for bankruptcy in 2012. How did Sapp attempt to dissolve the debt? By offering up a grand collection of Air Jordans, a lion skin rug, and more extravagancies. Unfortunately, the former professional football player fell short as his debt was $6.7 million, but his assets only totaled up to $6.45 million. When it was all said and done, Sapp was left with less than a thousand dollars to his name.
7) Stan Lee
Despite all of his past and current success, comic book legend Stan Lee’s company (Stan Lee Media) joined the bankruptcy club back in 2000. Lee’s filing actually threatened his ownership over his classically famous characters. Due to this, Lee switched his fictional creations to a new company (POW! Entertainment) as his company Stan Lee Media was the one under fire.
Funny man Sinbad has found himself filing for bankruptcy on more than one occasion. While some people go into debt due to foolishly spending their money, the comedian ended up filing bankruptcy due to making investments in himself. Planning to put out a movie and repay himself with revenue, the movie never came out and Sinbad was left with the tab. In other words, his debt was a product of taking creative risks in business. How ironic is that?
9) Donald Trump
Yes, the mogul businessman running for President of the United States has owned business which have filed for bankruptcy. Several times. On various occasions. For multiple reasons. Trump may have even racked up the most amount of filings on this list. Why, you ask? For making risky business moves. As he has stated on Twitter, “…many great business people have used the laws to corporate advantage….” While he has never personally filed for bankruptcy, many of Trump’s companies have.
10) Walt Disney
Even the Godfather of magic, fantasy, and precious childhood memories has filed bankruptcy himself. In his first attempts on his journey to greatness, Walt Disney went into debt trying to finance his original studio, Laugh-O-Gram. So, what was it that saved Disney from falling victim to bankruptcy and helped him to become financially stable again? Mickey Mouse, of course!