10 Biggest Celebrity Bankruptcies: Bankruptcy, despite being a scary word, is often heard when talking about big corporations and enterprises. And, in fact, some bankruptcies have made history, and changed the course of economy. On our list the top 12 largest bankruptcies we presented some of the greatest bankruptcies in US history, comprising the largest corporations in the world. Some companies have filed for bankruptcy and managed to recover through a merge, like Texaco Inc.’s 2001’s merge into Chevron Corporation (NYSE:CVX). In other cases, like the CIT Group’s, only being bailed out by the U.S. government under the Troubled Asset Relief Program could get the company back on its feet.
Nevertheless, there is another kind of bankruptcy that might just not affect the course of global economy, but indeed the course of our daily entertainment. Today we have confectioned a different list: The 10 biggest celebrity bankruptcies. Who you ever wondered how could a bazillion celebrity lose everything overnight? Check out this countdown of the biggest celebrity bankruptcies.
No. 10 Biggest Celebrity Bankruptcies: Larry King
This talk-show celeb was arrested in 1971 and charged with larceny for supposedly stealing $5,000 from Louis Wolfson, a Wall Street financier and his business partner. Even though the charges were dropped, Mr. King couldn’t manage to get any regular job for years, and had to declare bankruptcy in 1978. But his talent was still intact, and his luck changed when he was offered a late-night talk radio show in Washington D.C., the first step to becoming the TV legend he now is.
No. 9 Biggest Celebrity Bankruptcies: MC Hammer
Everything was smooth for MC Hammer during the eighties, until in 1990 he realized he was simply spending more than he was actually making. With a 200-person crew which he paid $500,000 a month, we finally had to declare bankruptcy in 1996, with a $13 million debt. Today Mr. Hammer is worth just $ 1.5 million.
No. 8 Anna Nicole Smith
Anna Nicole Smith, entitled gold-digger when marrying 90-year old husband, received a fortune when he eventually died. But she didn’t have the same luck with her second husband, J. Howard Marshall. When this oil magnate died, he left Anna Nicole Smith nothing. After a sequence of law suits Smith was slapped with a judgment in a sexual harassment lawsuit by a former housekeeper. She was forced to declare bankruptcy in 1996, but continued to battle for her dead husbands’ money. In 2011, four years after her death, her claim was rejected by the Supreme Court.
No. 7 Gary Coleman
Once considered the highest-paid actor on TV for “Diff’rent Strokes”, Gary Coleman filed for bankruptcy in 1999 due to highly expensive medical treatments and even costlier legal battles with his adoptive parents. With difficulties getting new jobs after his success at “Diff’rent Strokes”, he could never regain the status he once had. He passed away in 2010 due to health afflictions at the age of 42.
No. 6 Elton John
Elton John, music legend, was living in a 37-acre estate in Windsor, U. K., when he finally couldn’t afford it any more. He declared bankruptcy in 2002, when the BBC reported his credit card bills were rumored to top $400,000 every month, and staggering $55 million in the span of 20 months.
No. 5 Mike Tyson
Tyson, boxing legend, was knocked out when he was forced to file for bankruptcy in 2003: he had a $23 million debt, comprising unpaid taxes to the U.S. and the British governments, seven law firms, and limousine services. Mike Tyson’s extravagant spending included mansions, cars, a pet Bengal tiger and a $174,000 gold chain with diamonds of 80 carats. Tyson appeared on “The View,” and declared to be living paycheck to paycheck, but also stated: “I’m totally destitute and broke,” and added “But I have an awesome life.”
No. 4 Jerry Lee Lewis
Lewis has had several ups and downs along his life. He was kicked out of the Bible College for “playing the piano his own way,” but became part of the Sun Records, owned by Sam Phillips. Releasing two sensational singles “Whole Lotta Shakin’ Goin’ On” and “Great Balls of Fire,” and becoming a rock and roll success couldn’t prevent him for getting back in trouble: he married his 13 year old second cousin. He got back on track during 1960s with country smashing tracks, but in 1988 had to file for bankruptcy listing $3 million in medical, personal and tax debts. Nevertheless, this music idol recovered from the downfall and currently tours around the world.
No. 3 Lawrence Taylor
The football player had quite wild years during the 1980s. The 10-time Pro Bowler won two Super Bowls on the way to being inducted into the Pro Football Hall of Fame, but also had quite a complicated relationship with drugs: he was twice tested for cocaine use when he admitted finally his drug addiction. In 1997 he plead guilty for filing a false tax return in 1990, and in 2009, Taylor filed for bankruptcy to avoid foreclosure on his home.
No 2. Michael Jackson
It is no news the king of pop had quite some expensive and extravagant lifestyle. During 2007 MJ had to file for bankruptcy, after failing to pay back a $25 million loan on his home, Neverland Ranch. The house’s maintenance cost was more than $10 million dollars a year. By the time Michael Jackson died in 2009 he didn’t have a penny to his name.
No 1. Donald Trump
Of course, the number one celebrity to lose and win is Donald Trump. His different corporate entities have filed for bankruptcy four times: in 1991, 1992, 2004, and 2009. Indeed, these bankruptcies are not personal but corporative. Yet, in exchange for getting some of these bankruptcies approved, Trump had to give up Trump Airlines, a mega-yacht, and an almost 50% stake in the Grand Hyatt Hotel. Nevertheless, this magnate has an estimated fortune of more than $2.7 billion.
