They earned millions — sometimes hundreds of millions — and still lost it all. Here’s a look at the shocking financial falls of some of the biggest names in Hollywood.

💸 Fame Isn’t Financial Immunity

Many celebrities live larger-than-life lifestyles, but money mismanagement, bad investments, legal troubles, and lavish spending habits have left some of the world’s most recognizable names broke.

In the public eye, it’s hard to imagine how fortunes vanish. Yet bankruptcy filings and court cases tell a different story — one of overspending, misjudgment, and sometimes, exploitation.

💥 8 Famous Stars Who Went Bankrupt — And Why

1. MC Hammer

• Peak Net Worth: $70 million

• Bankrupt In: 1996

• What Happened: Lavish spending on a 200-person entourage, a $30M mansion, and poor business decisions

• Aftermath: Filed for Chapter 11 with over $13M in debt

2. Nicolas Cage

• Peak Net Worth: $150 million

• What Happened: Spent fortunes on castles, dinosaur skulls, exotic cars, and luxury real estate — many of which were foreclosed

• Aftermath: Took on multiple film roles to repay IRS and debt obligations

3. Toni Braxton

• Filed for Bankruptcy: Twice (1998 and 2010)

• What Happened: First from unfair record contracts, second due to health issues halting performances

• Aftermath: Eventually rebuilt her career, but lost millions along the way

4. Mike Tyson

• Career Earnings: Over $400 million

• Bankrupt In: 2003

• What Happened: Extreme lifestyle, lawsuits, and poor financial management

• Aftermath: Owed $23M in debt, now rebuilding through appearances and endorsements

5. Lindsay Lohan

• Estimated Lost Earnings: Over $28 million

• What Happened: Legal troubles, drug rehab, and lack of film work during critical career years

• Aftermath: Struggled with taxes and legal fees; slowly returning to the spotlight

6. 50 Cent

• Filed for Bankruptcy: 2015

• Why: Hit with a $7 million lawsuit and mounting business debts

• Aftermath: Used bankruptcy to restructure finances; continues to succeed in business today

7. Kim Basinger

• What Happened: Bought a whole town in Georgia ($20M) and backed out of a film, leading to an $8.1M lawsuit

• Aftermath: Filed for bankruptcy in 1993, later recovered through steady film work

8. Wesley Snipes

• Why: Failed to pay taxes for years — owed over $23 million

• Aftermath: Served time in federal prison, now gradually rebuilding his career

🧾 Common Causes of Celebrity Bankruptcies

• Lavish, unsustainable lifestyles

• Poor financial advisors or mismanagement

• Legal issues, lawsuits, or divorces

• Drug and alcohol addiction

• Lack of income diversification

• Overestimation of long-term fame or earning power

🛑 Lessons From the Rich & Reckless

• More money ≠ more wisdom

• No one is too famous to go broke

• Financial literacy matters — even (especially) in the spotlight

Some stars bounce back with smart choices and second chances. Others fade into the background, becoming cautionary tales of what happens when spending outruns reality.

Final Thoughts

The stories of bankrupt celebrities aren’t just juicy tabloid headlines — they’re a reminder that money without management is a recipe for collapse. In the age of social media riches and overnight fame, these cautionary tales matter more than ever.