8 Celebrities Who Had Weird Spending Habits That Led Them To Rags From Riches
8 Stars Who Filed for Bankruptcy
Affluence is the second name of the stars who work in Hollywood. These celebrities, which we will discuss today, rose to unprecedented fame in their respective careers. And with name, followed money, a lot of it. However, they couldn't handle it. Although it is one thing to attain wealth, handling that money is another ballgame. For this reason, some renowned faces had to file for bankruptcy at some point. So, here's a list of 8 celebrities who reported financial ordeals.
1. Aaron Carter
The late teen pop singer and rapper Aaron Carter rose to fame in the late 90s. He was a well-renowned face among the teenagers back then, ruling their playlists and hearts. However, in 2013, the former child pop sensation filed for personal bankruptcy, as reported by CNN. According to the documents, he owed $2 million in debt. A big chunk of that money he owed involved back taxes when his parents controlled his wealth. Unfortunately, he died at 34.
2. Toni Braxton
R&B singer Tony Braxton is among the highly publicized names who filed for bankruptcy. The songstress declared complete financial loss twice- once in 1998 and again in 2010, claiming she has debts between $10 million and $50 million. The Grammy winner revealed in an interview with ABC News she could only make $1,972 in royalties from her first recording contract. The second bankruptcy was the aftermath of her medical condition. To build up, she accepted private performances and acting.
3. Teresa Giudice
The Real Housewives of Beverly Hills star Teresa Giudice was first featured on the reality show alongside her then-husband Joe Giudice in 2009. Surprisingly, she filed for bankruptcy the same year, as reported by E! News. In a petition they filed, the ex-couple claimed to be under $11 million debt. In 2013, they were criminally charged to defraud their lenders. Consequently, they had to serve their time in prison. While Joe was deported to Italy, Teresa remarried to Luis Ruelas.
4. Sonja Morgan
Another star of Real Housewives of New York, Sonja Morgan, also filed for bankruptcy, following in the footsteps of RHOBH celeb Teresa Giudice. The 60-year-old star filed for chapter-11 bankruptcy in 2010, right after she divorced her then-husband. Despite being one of the most famous names of RHONY, she owed $19.8 million to creditors and had $13.5 million in assets following her messy divorce, miscalculated financial decisions, and bad luck. However, she bounced back and cleared all her debt in 2015.
5. Abby Lee Miller
The dancer and choreographer Abby Lee Miller is another name who went from being rich to poor. She has been the backbone behind Lifetime's show Dance Moms. She is the owner and Instructor at the famous Pennsylvania dance studio. However, the 58-year-old applied for personal bankruptcy in 2010, claiming a debt of $400,000. It was later discovered that Miller had lied about her financial troubles and had over $775,000 in hidden bank accounts. Consequently, she served prison time till 2018.
6. 50 Cent
Who doesn't know 50 Cent? The American rapper and actor rose to fame after his 2005 album Get Rich or Die Tryin' received unparalleled success. This led to a lot of wealth, but unfortunately, the rapper filed for personal bankruptcy in 2015, citing debts between $10 million and $50 million. The following year, in 2016, TMZ reported a judge signed off his bankruptcy deal, which allowed him to pay $23 million to two creditors over five years.
7. Mike Tyson
Mike Tyson is a name in the American boxing world. There are a few of them who reach the top of their game. While he ruled the boxing ring for decades, surprisingly, the legend filed for personal bankruptcy in 2003 with a debt of around $23 million. However, according to The New York Times, Tyson was making $30 million a fight. But, his spending habits got out of hand. However, the Tyson 2.0 recouped the losses and built his cannabis empire.
8. Kim Basinger
Award-winning actress Kim Basinger declared herself bankrupt in 1993. According to Variety, she received a judgment to pay $7.5 million to Main Line Pictures, who accused her of breaching an oral contract. In 1989, she bought a privately-owned land in Braselton, Georgia, for $20 million. Her initial plan was to turn that property into a tourist town. However, the project failed terribly. While going through the financial ordeal, her net worth was reported to be $5.4 million.
