6 Very Rich and Famous People Who Lost All The Money In No Time And Ended Up Broke
Many people can go from rags to riches in the blink of an eye by winning the lottery, inheriting money, or discovering something important. But have you heard about any cases of a millionaire who has gone directly to the poorhouse?
Well, maybe they weren't exactly poor in our definition of the term, but some celebrities were so broke they could not afford their extravagant lifestyles with some measly millions of dollars. For some of them, the impoverished status was the result of bad financial decisions, while others lived the effect of debauchery.
We bet you're dying to know who they are, so we won't make you wait any longer. Without further ado, let's find out which famous people lost all their money. Scroll down quickly and read this article before these celebs declare bankruptcy.
6. MICHAEL JACKSON
Okay, we totally understand that it's hard to believe that the King of Pop was penniless before his passing, but it's true. So, how is it possible? After all, we are talking about a musician who won 13 Grammy awards, 26 American Music Awards and set 40 Guinness World Records.
And that is without counting the millions of albums he sold around the globe. Considering all that, it would be safe to assume he kicked the bucket in abundance back in 2009, but that is not the truth. It turns out the 'Thriller' hitmaker was entirely in the red.
His financial problems started when he was accused of molesting a thirteen-year-old boy. To worsen things, other accounts of pedophilia later emerged, according to Billboard. Add to that the fact that he lived a lavish lifestyle he could not afford.
Forensic account William R Ackerman told the court during Jackson's trial in 2005 that the singer was spending around $15 million a year which was "more than he brought in," by News24's report. As a result, he faced numerous lawsuits for failing to pay loans.
The moonwalking pop star even faced the foreclosure on his beloved Neverland Ranch. And you won't believe this bit of information. At the time of Michael's passing, IRS asserted that the music legend had a net worth of $434 million, but Billboard explained that his estate said the contrary; it was only $2,105. Ouch!
5. JOHNNY DEPP
Without a doubt, this actor's paychecks are pretty hefty. His versatility in every role he plays and his chameleon abilities have made him of one of the best and highest-paid artists in Hollywood. However, Johnny's talent and fame did not prevent him from having financial woes back in 2016.
According to Forbes' estimates, Depp made $48 million that year, and his earnings soared to $650 million in all his acting career until that point. However, his economic crisis is easy to understand once you know about his wasteful way of living. Since the actor could no longer pay it, he drowned himself in debt to afford his luxuries.
According to CheatSheet, the Jack Sparrow actor had a monthly expenditure of $2 million, including $300,000 on wine solely, $200,000 on private trips, $150,000 on security, and $300,000 more on staff, only to name a few. Combine his debts with lawsuits from his wife and bodyguards, conflicts with his managers, and you have the perfect recipe for financial disaster.
4. 50 CENT
Perhaps, the singer was giving honor to his artistic name. 50 cents was almost what Curtis James Jackson III had left in his bank account back in 2016, when he declared himself bankrupt. The rapper made a name for himself in the music industry, being able to make $300 million in two years, according to NY Post.
The Washington Post estimated his net worth in $500 million. So how on Earth did he go bankrupt? The answer is simple: legal problems. 50 Cent was forced to pay $7 million to Lastonia Leviston after posting a sex tape online without her consent.
Add to that another $17 million he had to fork out to headphone manufacturer Sleek Audio following a lawsuit for copyright infringement. And we cannot leave out the luxurious life he lived as a well-known rapper. All that led the Candy Shop singer to file for bankruptcy, by NY Post's report.
"His assets total $24,823,899.18. The court rulings pushed his debt to $32,509,549.91," said the source. Thankfully, he was discharged from bankruptcy after he managed to pay his debts. And now he seems to be in better financial condition.
3. LINDSAY LOHAN
It seems that it was yesterday when the red-headed actress was on top of the world. With movies such as 'Mean Girls,' 'Herbie Fully Loaded,' and 'Freaky Friday,' the young actress had cemented a successful career in Hollywood by that time. In fact, SheKnows reported her net worth was $30 million. Not bad for a teenager!
But by 2018, her estimate was a completely different amount: just $800 thousand, according to Celebrity Net Worth. The loss of all her money was mainly the result of bad spending habits. By CheatSheet's report, "A good portion of her income went to purchasing fancy cars, designer clothes, and meals at lavish restaurants."
Besides, she also used to spend $5,000 a week on drugs and narcotics, to the point that she racked up a $30,000 debt with her suppliers. The ginger girl also had several legal problems. She was arrested for everything you can imagine.
Between 2007 and 2013, the former actress went to jail on numerous occasions due to altercations, shoplifting, reckless driving, possession of illegal substances, and DUIs. Therefore, she had to pay court-ordered rehab fees, IRS debts, federal back taxes, and tons of bails to get herself out of jail.
2. MIKE TYSON
If you wanted an example of what an athlete should not do with his money, you could take a look at the boxer's life. He is a living lesson of ways to squander a massive fortune. His successful boxing career earned him a net worth of $400 million over 20 years.
Despite all that money, he also filed for bankruptcy in 2003 under Chapter 11. He wasted all his millions on mansions, phones, cars, jewelry, and parties. Just to give you an idea, some days before filing the petition to the court, he was spotted donning a $173,706 gold chain with 80 carats in diamonds.
In a nutshell, the boxer had $23 million in debt including the cost of the fancy gold chain, according to the NY Times. Others of his liabilities include money owed to treasuries, trainers, financial managers, child support, British tax authorities, and the list goes on, and on.
1. KANYE WEST
The name of the rapper conjures up the word "debt" to anyone's mind. Despite being married to Kim Kardashian, whose net worth is $350 million, the famous singer was entirely in the red in 2016. According to The Guardian, his personal debts racked up $53 million.
The source even revealed he asked Facebook founder Mark Zuckerberg for help, encouraging him to invest $1 bn in his ideas during his "hour of need." And we cannot forget the excessive way of living the singer had some years before. For instance, when he proposed to Kim, he rented a whole baseball stadium with the Chicago Symphony Orchestra to liven the moment up.
However, West claimed that his debts stemmed from his failure in the fashion industry. According to Vanity Fair, he had had lucrative deals with Nike and Adidas. However, it was when he tried to get his own clothing business off the ground that the financial woes started.
He created a label called Pastelle and a line of G.O.O.D merchandise which, by the way, never made it to the stores. Moreover, the whole business shuttered after only seven months. The failed fashion experiment cost him $30 million in losses and no gain.
OMG! It is so shocking to find out that these famous celebs who had all the money in the world ended up almost "penniless" (from their own point of view). What do you think about the ways these stars managed their money? Tell us your opinion in the comment section, and don't forget to share this article with other friends who love being up-to-date with the Hollywood world.