14 Celebrities Who Went Broke: Michael Jackson to Sharon Stone

People often assume that celebrities, with their luxurious lifestyles and multiple properties, are financially secure. Yet, as the late Notorious BIG famously said, "mo money, mo problems.” Various issues such as unexpected medical bills, legal costs, or simply a lavish lifestyle can lead high-profile figures to file for bankruptcy. This process doesn’t always mean they’re completely broke but often acts as legal shelter against financial ruin, by restructuring debt repayment plans or liquidating assets to pay off some of their debt.

One such figure who faced bankruptcy was Michael Jackson. In 2004, years before his untimely death at age 50, his financial advisers declared that he was nearly broke and unable to repay a $70 million loan to the Bank of America. Despite his dire financial status, Jackson reportedly continued his extravagant lifestyle, accruing around $2 million monthly on new cars and other items. By the time of his death in 2014, he owed more than $500 million to various creditors.

Actress Sharon Stone also faced severe financial hardship after suffering a stroke in 2002. She revealed that during her years-long recovery, people took advantage of her, stripping her of her $18 million savings. Her refrigerator, phone, and other essentials were in other people’s names, leaving her with no money. Despite being one of the biggest stars of the Eighties and Nineties, the industry forgot her after she took time out to recover. Nevertheless, Stone has moved on from bitterness and now lives for joy and purpose.

Nickelodeon’s former star Drake Bell found himself in a financial nightmare in 2014, filing for bankruptcy with $581,000 in debt. Bell lost his $2 million Los Angeles home to foreclosure shortly after. Legal documents revealed that he earned $2,820 a month but had monthly expenses totaling $18,771, in addition to owing taxes.

Even musical icon Elton John wasn’t immune to financial trouble. He filed for bankruptcy in 2002 after lavishly spending on multiple international properties and going on a shopping spree. By 2003, however, John signed a lucrative three-year residency deal with Caesars Palace in Las Vegas and regained his financial footing. As of 2024, his net worth is estimated at an impressive £470 million.

Former heavyweight champion Mike Tyson’s struggles are well-documented. In 2003, after earning $400 million over 20 years, Tyson filed for bankruptcy. His extravagant lifestyle cost him around $400,000 a month and he had $27 million in debt. Legal fees alone accounted for $9 million. Although Tyson managed some debt payments through fight incomes and asset sales, he admitted in an affidavit that he was still unable to pay his bills. Reflecting on this period, Tyson later expressed relief at merely surviving his thirties.

Aaron Carter, who earned a reported $200 million before turning 18, also declared bankruptcy in 2013 due to financial mismanagement by his parents, leaving him with just $2 million and owing $4 million in taxes. Sadly, Carter passed away in 2022 at age 34, without setting up a will, which likely resulted in his assets going to his son Prince. At the time of his death, his net worth was approximately $400,000.

Cyndi Lauper went from bust to boom, filing for bankruptcy in 1981 after a failed debut album with her band Blue Angel. She supported herself through odd jobs and eventually found major success with her 1983 solo album, She’s So Unusual, featuring hits like "Time After Time" and "Girls Just Want to Have Fun."

Kim Basinger’s career also hit a rough patch in 1993 when she dropped out of the film Boxing Helena. The production company sued her for breach of contract, resulting in a $7.4 million judgment against her. She filed for bankruptcy and ultimately settled the suit after a prolonged legal battle.

Kelly Rutherford faced financial hardship due to a costly custody battle with her ex-husband over their two children. In 2013, after spending nearly $2 million on legal fees, she declared bankruptcy. Reflecting on this tough period, she later emphasized the importance of retreating and healing with family.

Dionne Warwick, the legendary singer, filed for bankruptcy in 2013, citing tax debts dating back to 1991. Negligent financial management over several years forced her to this point. Warwick claimed a monthly income of $20,950, barely enough to manage her expenses of $20,940. Despite repaying the original taxes, accrued interest and penalties made it difficult to resolve the issue until the case dismissal in 2019.

Francis Ford Coppola, Oscar-winning director, filed for bankruptcy three times within nine years due to the commercial failure of his 1981 film One From the Heart. In 1992, he listed $98 million in liabilities against $53 million in assets. More recently, Coppola took a $120 million risk with his self-funded movie Megalopolis, although initial reviews have been underwhelming.

Rapper 50 Cent filed for bankruptcy in 2015 following some poor investment decisions. This move saved him from financial collapse, explaining in 2020 that it allowed him to be secure and invest again. Today, he boasts an estimated net worth of $40 million.

Music icon David Crosby faced financial struggles in his early solo career, declaring bankruptcy in 1985. Although he found success with Byrd and Crosby, Stills, Nash & Young, Crosby admitted to significant financial distress in later years, largely due to the COVID pandemic halting his ability to perform live.

R&B singer Toni Braxton also faced financial ruin twice. After signing her first recording contract, she had to repay the label for various costs, pocketing just $1,972. She filed for bankruptcy in 1998 and again in 2010 after health issues forced her to cancel shows and led to the foreclosure of her $2.6 million Nevada home.

Source: Particle News, The Hollywood Reporter, The Sunday Times, The New York Times, People, Guitar World