6 Celebrities Who Went Bankrupt
Wealth and fame usually go hand in hand, and we often hear news that celebrities are in financial trouble and the only option is to declare bankruptcy. Sometimes this is the result of an overly luxurious lifestyle, sometimes the result of negligence in paying taxes, or unfair contract. Here are 6 celebrities who declared bankruptcy and why.
1. 50 Cent
50 Cent proved to be a savvy businessman, making 300 million US dollars in just a few years, not just because of music (for example, a huge return on investment). Despite an estimated net worth of US$500 million, the rapper declared bankruptcy in 2015. He was released in 2017 and paid off $22 million in debt.
2. Kim Basinger
Under the suspicious suggestions of some family members, actress Kim Basinger spent 20 million US dollars to buy the entire Georgia town, nearly 1,700 acres. She plans to turn this place into a tourist attraction by building a film studio and holding a film festival. These plans were never realized. When Basinger later encountered some financial difficulties, she could only sell most of the place. She later admitted in an interview that there was "no benefit." It is reported that the whole experience caused a rift between her and her family.
3. Marvin Gaye
Soul legend Marvin Gaye was forced to declare bankruptcy in 1976 after his divorce. This cash-strapped singer was asked to pay all royalties for his next album (Here, My Dear) to his ex-wife to make up for the unpaid alimony of $600,000. Another key factor in Guye’s bankruptcy was his escalating and increasingly expensive cocaine habit, which caused him to consume his income at an alarming rate.
4. Larry King
Larry King is now considered a legendary broadcaster, but he was not glorious in the early days of the industry. Especially in 1971, he was arrested and charged with gross theft after stealing $5,000 from his then business partner. Although the charges were dropped, the whole incident caused him to lose trust in his employer. The absence of a job for four years left him with a debt of $350,000, which caused him to declare bankruptcy in 1978. In the end, his very successful CNN program freed him from financial difficulties.
5. Gary Coleman
As one of the most popular TV stars, child actor Gary Coleman makes $64,000 a week for playing Arnold "Wachootalkinbout, Willis?" After the popular sitcom Different Brushstrokes ended, the cute child star turned into a less cute adult, and the lucrative characters dried up. Coleman thought he had millions of dollars in the bank, and was shocked when he looked at his financial statements and found that he was penniless. Wanting to know where all the money went, he eventually sued his adoptive parents, accusing them of squandering his TV wealth. This protracted and costly lawsuit, coupled with his ongoing medical problems with renal dysfunction, has exhausted the remaining funds in his bank account.
6. Toni Braxton
R&B singer Toni Braxton was a millionaire. Although Braxton sold 20 million albums, she claimed that she signed a false deal with royalties of less than $2,000. After filing an unsuccessful lawsuit against her record company, she declared bankruptcy in 1998. In 2008, due to health reasons, she suddenly canceled her performance in Las Vegas, and the insurance company Lloyd's of London refused to pay (they claimed that she did not disclose her medical problems in the insurance policy) She undertook all costs related to the performance. Faced with multiple lawsuits from creditors, she filed for bankruptcy for the second time in 2012. Braxton seems to be heading towards a third bankruptcy, and in early 2019 there were reports that she owed more than $500,000 in taxes.