MC Hammer

One of the richest rappers of the ’90s, MC Hammer made some of the most memorable dance music heard to date, featuring some of the biggest hits like ” U Can’t Touch This ,” which was released in 1990. He became famous faster than expected. MC Hammer’s music, made almost 25 years ago, is used in karaoke and some of the biggest dance music festivals.

In 1996, when MC Hammer was one of the richest, he spent a lot of money on luxurious things. It was said that he was making $30 million a year at the time, which was a staggering sum. He hired nearly 200 people under his payroll and covered his massive mansion in gold! He bought helicopters for himself, in which he traveled everywhere and spent 19 racehorses for commercial and competitive purposes. In a few years he went broke, which forced him to recover from his spending and extravagant life.

Mike Tyson

Once one of the richest athletes in the world, there was once a time when Mike Tyson was known everywhere for winning top boxing championships for many consecutive years. Mike has boxed all his life and has been married three times. During his time in prison, he claims to have had a lot of sex with female visitors and his drug counselor. He even told his second wife, Monica Turner, that he had AIDS, which was later found to be untrue. Mike is even said to have spoken about not minding smashing someone up so they can go back to jail! It is said that he had so much sex that it tired him and he skipped exercise for many days just by hanging in his cell.

Mike is said to have made a staggering $400million throughout his incredible career but overspent on things like jewelry, electronics and exotic animals. He agrees with the fact that he overspent on motorcycles and cars. After his career ended in 2005, Mike’s financial life collapsed. His expenses increased when he decided to party and use drugs. He spent most of his money at strip clubs, threw extravagant parties and used cocaine more than ever. Believing his working life was over, he decided to take a back seat. He was broke by 2003 and filed for bankruptcy. He has a huge IRS debt that he hopes to be able to pay off through his Hollywood presence in movies, shows and events.

Janice Dickinson

She is the world’s first supermodel and a former judge on America’s Next Top Model . She is in her 60s and has done more plastic surgeries in later years. She’s racked up unpaid tax bills and cosmetic surgery. Janice owes more than $8,000 to Beverly Hills dermatologist Arnold Klein and over $8,000 to a Beverly Hills anti-aging center herself. She filed for bankruptcy in 2013 and acknowledged that she had to repay her debt. According to the Daily Mail UK, she was nearly a million dollars in debt and has promised to pay it back. her fiancé dr. Robert Gerner helped her pay off a small portion of her debts.

In early 2013, Janice was accused of stealing $20,000 worth of wartime jewelry during New York Fashion Week when she explained it was a misunderstanding. She claims she was trying on jewelry and forgot she was wearing it when she left. She also covered up the fact that she would never steal cheap jewelry. Later, when she got clean because she was broke, it all made sense to us.

Kelly Rutherford

Girls all over the world will recognize this lady through the hit show. “ Chatterbag. She has worked as an actress continuously and religiously on Melrose Square . She has also long been in the spotlight with the child custody case. The actress had spent $1.5 million on her divorce from ex-husband Daniel Giersch and custody of their children. She has claimed $2,021,832 in debt while possessing assets of just $23,937. She filed for bankruptcy in 2013, demanding Daniel pay the substantial legal sum legally through attorneys.

By the time the show Gossip Girl ended, Kelly’s monthly income dropped from $ 486,000 to a bare minimum of $1,279.33. After she filed for bankruptcy, Kelly only had $11,487 in her account. This prompted her to borrow large sums from her family and friends. Kelly left her ex-husband in 2009 while she was still pregnant and having her second baby. She had to live with her friend and continued to fight for Hermes (8) and Helena (6). She claims she spent every penny on Gossip Girl , her pension and her stocks, all fighting for custody of her child. She said that since the divorce she has made over 40 trips to Europe to visit her children.

Theresa Judge

You may remember her from her time on the show The Real Housewives of New Jersey . She married an Italian, Joe Giudice and they have 4 children together. Creditors soon came out demanding the money she owed them. This situation shed light on the couple’s financial woes. It was then that the couple decided to file for bankruptcy. However, they did not report enough revenue from the reality show, prompting the government to retaliate and deny their request. But the bad news didn’t end there.
According to an article in the Daily Mail UK, the trustee in their bankruptcy proceedings has filed discharge papers which have been used to settle the debt. However, the judge denied this. The court announced that the couple will have to pay off their debts while serving time in prison. In 2013, they put their 6 bedroom New Jersey home up for sale at a price of $4 million. They also then had to put their vacation home on the New Jersey shore up for sale to pay creditors before serving their sentence. That same year, the couple pleaded guilty to conspiracy to commit fraud. Joe also pleaded guilty to failing to file a $1 million tax return between 2004 and 2008. He pleaded guilty to a total of 9 counts of post, Wire transfer, bank and bankruptcy fraud. The court allowed them to serve prison time separately, so that at least one parent always looked after the children. Lawyers also told Joe that he must be prepared to return to Italy after his conviction as he would still remain an Italian citizen. Teresa is now in prison, her husband Joe will follow in 2016.

David Cassidy

David was the heartthrob of several women who lost the word in the ’70s on The Partridge Family. The success of the show meant a long,comfortable financial and professional life in Hollywood for him. He’d sold millions of records and taken care of packed stadiums around the world. However, in 2014, the financial situation and debts of the singer became known and he filed for bankruptcy. A Bloomberg report showed that he owed a total of $10 million. It includes mortgages on his homes in Florida and Saratoga Springs, New York. His credit card debt is known to be $21,000 owed to American Express and $17,000 to be paid to Citi Bank. The celebrity also claims he may have horse-related expenses in the future as he has invested in several thoroughbred horses that he co-owns.

The news of his troubles doesn’t just stop there. He attempted to turn around and get back on tour to make money after completing his rehab and alcohol education program. David was arrested in Los Angeles in 2014 when he attempted to illegally turn off the 405 freeway while registering a blood alcohol content of 0.19, more than double the legal limit. In 2010 he was arrested for DUI in New York and again in Florida. The judge then ordered him to enroll in an alcohol abuse rehabilitation facility for at least 90 days. In addition to rehab, he was sentenced to 60 months probation. The singer is now officially back on tour while also battling SONY for unpaid compensation for his show.The Partridge Family .

Lindsay Lohan

Lindsay Lohan was one of the most popular teen stars who rose to fame fairly quickly in their careers. With her fair share of music and acting opportunities, Lindsay stayed afloat for most of her career. She was also known to be a drug addict and had entered rehab as well. However, not everything is as beautiful from the outside as it seems. 2012 was a bad year financially for Lindsay. The celebrity barely had $100 in her bank account while spending lavishly on luxurious things. The IRS reported freezing her account due to $234,000 in back taxes she owed. This came even after she took out a $100,000 loan from her Scary Movie 5 co-star Charlie Sheen.

Lena Headey

The star of Game of Thrones , actress Lena Headey is known for her thought-busting and stunning performance on the hit TV show. When you think of a celebrity like this, you’re pretty sure that she must have enough money not only to survive, but to live lavishly. Unfortunately, this was not the case for Lena in 2013. She spent millions on custody of her son after divorcing her ex-husband. She only had $5 left in her account! Though we think she ‘s now doing well with two more successful seasons of Game of Thrones , we’re pretty sure Lena will be coming to terms with her personal issues.

Michael Jackson

Sometimes you see celebrities go bankrupt and wonder how that’s even possible. With millions of dollars in income, how do celebrities like MJ go broke? The answer is pretty simple; They spend and invest in frivolous things instead of securing the money for future and long-term use. With over peak income coming in, personal spending is also reaching skyrocketing heights.

In MJ’s case, his home cost $10million in just maintenance, every year! With age, you have to understand that her career is also getting older. Newer singers and pop icons are springing up everywhere, crowding out the older ones. However, in Michael’s case, he has been at the top of his game for most of his life. He was named the most successful entertainer by The Guinness Book of Records . However, over time, Michael failed to repay his $25 million loan from Neverland Ranch. The king of pop and dance music had to file for bankruptcy in 2007.

Natasha Lyonne

You can recognize her for her flattering performance in Orange Is The New Black . With a dark, grungy role in her kitty, Natasha seems to live up to her performance as the show stays in the constant spotlight. However, it wasn’t always a happy period for Natasha. After countless encounters with the law and multiple health issues, Natasha has faced numerous issues in her life in terms of career and finances. She suffered from hepatitis C and a collapsed lung. This American Pie actress went bankrupt and lived on the streets. However, things turned around for her when Natasha landed the laudable role in Netflix’s Orange Is the New Black .