Top 10 celebrities that had to file for bankruptcy 

Bankruptcy is a common phenomenon in Hollywood, especially if one counts the lavish lifestyle celebrities are habituated to, with financial mismanagement culminating in devastating results. Moreover, sometimes the celebrities find themselves trapped in legal battles, divorces, and settlements that further bring their bank balance close to zero. Here is the list of the top 10 celebrities who had to file for bankruptcy, be it because of a decline in career, addiction issues, fraud, an unsuccessful business venture, or legal battles.

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Top 10 celebrities that had to file for bankruptcy

1) Mike Tyson

Mike Tyson was not only a boxing champion but also a cultural icon. A symbol of raw aggression, Tyson's flashy tattoos, voice, and temper often could be found stamped across the first page of many Hollywood tabloids. He was earning a lot, but his spending was also excessive, uncontrolled, and lavish; like once he spent about US$2 million on a gold bathtub.

If this wasn't enough, he bought mansions, about a hundred luxury cars, and exotic pets like tigers. His financial management decisions were extremely poor. Therefore, it was in 2003 that he had to file for bankruptcy. At this time, he was US$23 million in debt, as per CEO Today, and was facing a lot of legal troubles. His history with substance abuse is also quite famous, but Mike Tyson did not let the situation triumph over him and chose the path of redemption, and then rebranded himself back to the pop culture icon that he was.

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2) 50 Cent

You might have found 50 Cent's name featured on many popular rap tracks, but did you also know that this rapper filed for bankruptcy in July 2015? It is no secret that 50 Cent was a man with a lot of persona, as he managed to survive nine gunshots. His music is the backbone of the rap industry and, to date, is enjoyed by many people.

This music mogul found himself entrapped in cycles of legal battles, massive lawsuits, and business loans. Eventually, he had to file for bankruptcy, as he found himself US$32 million deep in debt, as reported by The Guardian. He later gave the statement that he filed for insolvency not because he was broke, but because he was a smart businessman who took the opportunity to restructure his debt and protect his future assets.

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3) Francis Ford Coppola

Who here doesn't know about the legendary Francis Ford Coppola? This legendary filmmaker, who directed the classic hits The Godfather, Apocalypse Now, Bram Stoker's Dracula, and many other famous films, enjoys unparalleled fame. Despite creating some of the greatest works of cinematic history, he found himself filing for bankruptcy, not once but twice, as can be confirmed by The New York Times.

Perhaps it was his passion-driven, risky filmmaking or the collapse of his production company, American Zoetrope, that landed him in such financial trouble. His story shows how it takes personal stakes and a lot of risky investments to create art, which isn’t always a commercial hit. Despite his hefty debts, one cannot deny his contribution to the film industry and respect him for his craft.

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4) Larry King

Before Larry King became the voice of America, he was facing financial troubles and had to file for bankruptcy in 1978, as per CNBC. It was during the times when he was still searching for stability in his career and had to face many ups and downs.

In 1971, he was accused of committing fraud by his business partner, and his charges severely damaged his image. He lost a lot of projects, and his career fell into a slump. Rising out of this was difficult without filing for bankruptcy, especially considering that his debt listings were over US$350,000. Eventually, he did not succumb to the situation and managed to rise above it and found national fame with his famous show, Larry King Live, on CNN.

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5) Cyndi Lauper

The ‘Girls just wanna have fun’ singer, Cyndi Lauper, has also gone through a bankruptcy trial, as confirmed by CEO Today. Before her career had a breakthrough, Lauper was the lead singer of the band Blue Angel during the 1970s. Unfortunately, this band flopped, and she was sued by the manager and had to pay out of her own pocket.

She was not only deep in debt but also blacklisted by the music industry. She had to take up odd jobs and lived in poverty to make ends meet. But this also forced her to find a fresh start and give a solo debut, which became quite successful, and she found herself becoming a pop icon, winning not only Grammys and Emmys but also Tony Awards. She thrives in the realm of Broadway music and is an active advocate for LGBTQ+ rights.

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6) Anna Nicole Smith

Actress Anna Nicole Smith often found herself compared to the legendary Marilyn Monroe. This reality TV star was a pop culture menace in the early 2000s. Her marriage to 89-year-old billionaire J. Howard Marshall was quite infamous. After the death of her wealthy husband, she claimed that she would inherit about 1.6 billion from his empire. But she was countersued by the billionaire's son, Pierce Marshall, who dragged the case on for over a decade.

Eventually, she lost the battle, and after a defamation case filed by a former nanny, she had to file for bankruptcy in California, as reported by Forbes Magazine. Anna Nicole Smith is known for an extravagant and unstable life, filled with excessive spending and substance abuse, and in the end, she had to pay for all of it.

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7) Gary Coleman

Gary Colman found success as a child. From 1978 to 1986, he played Arnold Jackson in the sitcom Different Strokes. He was so popular as a child actor that he would earn about a hundred thousand US dollars per episode. But his adoptive parents and managers mismanaged his earnings. Moreover, he also suffered from congenital kidney disease and had to spend a lot of money on frequent dialysis. His career declining due to typecasting didn't help either. Eventually, in 1999, after he was US$70,000 deep in debt, as reported by Time Magazine, he had to file for bankruptcy. His story garners sympathy and is a lesson for new child actors on how to manage their assets wisely and only under the guidance of people they truly trust.

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8) Dorothy Hamill

Dorothy Hamill was a very famous figure skater who had inspired generations. Her haircut became a fashion trend, and she was idealized for her grace, strength, and elegance. Winning the 1976 Olympic medal was a turning point in her life, which made her a celebrity.

After enjoying fame for about two decades, she eventually hit the brink of her success and found herself sinking back into troubled financial waters. Her business venture of building Ice Capades proved to be a failure, and in 1996, she had to file for bankruptcy, as per The New York Times. She had personally guaranteed loans for her business, which added a long list of financial liabilities to her name, and going through a divorce at the same time didn't help either with her decision-making skills.

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9) Stephen Baldwin

Did you know that Stephen Baldwin, brother to actor Alec Baldwin, father to Hailey Bieber, and father-in-law to pop star Justin Bieber, had to file for bankruptcy in July of 2009? Actor Stephen Baldwin hailed from a family of successful actors but never managed to find the same fame as his brothers. He had one or two popular roles, but constant success wasn't for him.

His declining acting career led to an increasing debt account. He had not only mortgage debts and taxes but also significant credit card defaults, which had accumulated over the years. He owed about US$2.3 million to the federal and state banks, and in 2017, he even had to publicly auction off his house, as per ABC News.

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10) Kelly Rutherford

Actress Kelly Rutherford, who played Lili Van Der Woodson in the hit show Gossip Girl, also, in contrast to the rich character that she played, had to file for bankruptcy in real life. The turning point of her life came in the form of an expensive, internationally diverse custody battle with her husband, Daniel Giersch. The legal battle stretched for about six years, and during this time, she spent lots and lots of money on legal fees alone. Eventually, she lost the child custody battle and then had to splurge lots of money again on international travel to meet her children.

This not only led to a loss of income and savings but also hindered her acting career, as people often refrained from hiring her in projects due to her court battles. It was in June 2013 that she finally had to file for bankruptcy, as reported by People Magazine. Her story is one of maternal sacrifice, and she has publicly spoken about it, gaining support from many celebrities like Kim Kardashian and Kris Jenner.