When we hear about some actress making $10 million for a movie or that there are multiple Real Housewives stars earning more than $500,000 a season for getting drunk and fighting with their frenemies, it can be easy to assume that celebrities have it made when it comes to money. We see their ultra-luxe vacations and sprawling mansions on social media, and it's hard not to feel like life has to be pretty sweet when worrying about paying the bills isn't an issue.
But then a story will break about a celebrity filing for bankruptcy, or even facing prison time for not paying their taxes, and it becomes clear that the financial lives of some of the most famous people out there just might be more complicated than we'd expect. There have been stars who have lost their riches due to excessive spending, and even some who got swindled in a Ponzi scheme.
Luckily, some of the celebrities who lost all of their money were able to financially bounce back, but some stars may never be able to quite match the wealth they once had. Read on for the scoop on who lost their money and how much they lost (we're not ashamed of our nosy game!).
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MC Hammer
MC Hammer was one of the biggest stars in the radio-friendly rap game of the 1990s and he both made — and spent — a lot of money. He filed for bankruptcy in 1996 and was more than $13 million in debt, largely due to lavish spending that included buying a horse stable and having 200-plus people on staff.
Kevin Bacon & Kyra Sedgwick
Kevin Bacon and wife Kyra Sedgwick lost millions of dollars as a result of investing in Bernie Madoff's Ponzi scheme. Kevin shared on the Smartless podcast that he and Kyra "had most of our money in Madoff" and learned "obvious life lessons there — if something is too good to be true, it's too good to be true."
Alex Jones
We're not going to lie: We have zero sympathy for the fact that far-right radio host Alex Jones has declared bankruptcy and is likely to continue to lose his money after being found guilty of defamation for lying about the gun violence murders of little children. We hope he loses EVERYTHING.
Michael Jackson
While the late Michael Jackson was one of the most successful pop singers of all time, many fans may not realize that he was deeply in debt at the time of his death in 2009. According to some reports, he was in the hole to the tune of more than $400 million and was even in danger of losing his famous Neverland Ranch estate.
Sonja Morgan
The whole basic premise of the Real Housewives has been to watch wealthy women look fabulous and create drama. The truth is that there is a long history within the franchise of cast members who might look the part but are actually really struggling financially. This includes RHONY star Sonja Morgan, who filed for bankruptcy in 2010, claiming to be more than $20 million in debt. In 2016, she was sued by lawyers for not paying a $300,000 debt, and she's even been accused in the past of not paying her staff. It seems like she's turned a financial corner, though, likely thanks to the roughly half a million dollars per season that she earns on the show.
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Teresa & Joe Giudice
Teresa and Joe Giudice's money troubles ended up leading to both of them serving prison time. The RHONJ couple had already filed bankruptcy all the way back in 2009 because they owed $10 million to creditors, including more than $100,000 in credit card debt. In 2013, they were charged with fraud and attempting to illegally get more loans and mortgages by claiming they had more money than they actually did and trying to hide assets. They were found guilty on multiple charges related to their financial shadiness.
Nicolas Cage
Actor Nicolas Cage has made tons of money over the course of a career that includes roles in more than 100 movies. Unfortunately for him, he has also spent quite a lot of money since he became famous. Some reports estimate that he frittered away more than $150 million from 1996 to 2011, and in 2008 the IRS put tax liens on his real estate portfolio because he owed millions of dollars in back taxes. He eventually sold several properties and rare collectables and paid off the $14 million debt to the IRS.
Wesley Snipes
Another star who dealt with significant tax issues is Wesley Snipes. The actor served more than two years in prison for tax fraud and, at one point, owed the IRS more than $23 million for failing to pay taxes on time. He also lost multiple homes to foreclosure during that period of his life.
Toni Braxton
Singer Toni Braxton has filed for bankruptcy twice and cited her own overspending combined with bad record deals as the primary causes. She revealed that she even considered posing for Playboy to try to help with her debts, which were estimated to be more than $10 million in 2011.
Mike Tyson
Mike Tyson is still widely considered one of the best boxers of all time (though not one of the best humans, given his history of both sexual and domestic violence), and over his career he earned more than $400 million. But he was forced to declare bankruptcy in 2003 and was known to have been a big spender on things such as jewelry, cars, and even Siberian tigers. He also claimed to have lost millions of dollars as a result of fraud and embezzlement from promoter Don King.
Willie Nelson
Beloved country singer Willie Nelson is another celeb who lost all his money and found himself in real trouble with the IRS. In the 1990s, the IRS ruled that he owed more than $16 million and seized some of his assets and property and sold it at auction. Willie eventually released an album called The IRS Tapes: Who Will Buy My Memories? and used the proceeds to help pay off the rest of the debt.
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Stephen Baldwin
Actor Stephen Baldwin, father of Hailey Bieber, is another star who ran into trouble with the IRS. Stephen, who is reported to have a net worth of negative $2 million, was arrested in 2012 for not filing taxes for three years in a row. This followed his bankruptcy filing in 2008 where it was revealed that he had more than $700,000 in credit card debt. His financial troubles continued into 2017 when he had a home foreclosed upon. Maybe he can hit up son-in-law Justin Bieber for a loan if things get tight again?
Dennis Rodman
Another superstar athlete who blew through a fortune is Dennis Rodman. The basketball great has had a messy life off the court, including financially. He reportedly lost more $20 million to a fraudulent financial advisor and at one point owed $800,000 in back child support. He is now estimated to have a net worth of less than $1 million.
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Aaron Carter
The story of Aaron Carter is a tragic one that ended too soon when the former child star died at the age of 34 in November 2022. The singer and actor struggled with substance abuse and also faced significant financial challenges. He spoke openly about the fact that his parents mismanaged the millions he earned before he turned 18. He filed for bankruptcy before he was 25 and in later years he even turned to selling NSFW content on OnlyFans to try to earn money.
T-Pain
Legendary hip-hop artist T-Pain has been open about his financial highs and lows. During an interview on The Breakfast Club radio show, he explained that bad investments took him from having more than $40 million to the point where he "had to borrow money to get my kids Burger King." "I've been mega-rich, I've been super broke, right in the middle of thinking I was mega-rich, and then got rich again, and you know learned how to really give a s— about money," he explained.
Thankfully, he is on the upswing again, due in part to his gig hosting The Masked Singer.
