Famous people are sometimes forced into bankruptcy because of bad decisions and the inability to manage their finances as they grow or due to illness or disability. Many famous people have had to file for bankruptcy, and if you’re wondering who, here are a few examples.
1. Walt Disney
Walt Disney, one of the pioneers of animated movies, is credited for making kids’ dreams come true. His company was an empire, with everything from theme parks to films and merchandise. Disney’s famous characters include Mickey Mouse, Winnie the Pooh, and Princess Diana. While Disney might be a household name now, it wasn’t in the beginning. When Walt tried to get his bank to loan him $150,000 at 3% interest, they rejected him because they thought he didn’t have an extensive enough track record.
2. Nicolas Cage
An acting career in Hollywood has given him a large fan base. He has starred in many successful movies and TV shows, including Ocean’s Eleven, True Romance, and National Treasure. However, Cage has also flubbed up on a few contracts regarding movie deals. Some of his biggest failures include the movie The Wicker Man and the film Lord of War.
Nicolas Cage was one of the highest-grossing actors of the 90s. However, he was forced to file for bankruptcy due to a large gambling debt. He could not pay off his debts, which totaled almost $11 million, and later filed for bankruptcy. In 2009 Cage paid off most of his debt and worked out a deal where he would not have to be involved in the company’s business, which had filed for bankruptcy.
3. Mike Tyson
Mike Tyson’s boxing career was lucrative. It was one of the most successful in the sport, but Tyson’s personal life didn’t do so well. His marriage to Robin Givens fell apart, and he was accused of domestic violence over 100 times. And the end of his marriage was just the beginning of his financial downfall.
Mike Tyson is one boxer who spent millions too fast and couldn’t maintain his income throughout his boxing career. He was accused of not moving his finances well and losing money on many investments. He filed forbankruptcy in 2003 and eventually settled in 2010. His financial situation made him go bankrupt again in 2012, with a Chapter 13 plan.
4. Donald Trump
Donald Trump is an American business tycoon born and raised in New York City. His real estate career has helped him gain a great deal of wealth. He has built many successful businesses, including multiple casinos and golf courses. However, his financial situation was on the rocks for various reasons, including his divorce settlement with Marla Maples.
Trump has a powerful business empire that makes him one of the world’s most affluent people in business, but Trump is not without his financial ups and downs. In addition to several bankruptcies, he also had litigation against his corporations due to unpaid taxes and employees.
5. Dave Ramsey
Everyone marvels at the financial expertise of Dave Ramsey, and he is often featured in magazines like Time and Newsweek. He is a radio host and author of multiple books on finance. His advice has helped millions of people get out of debt. However, Dave has gone through some financial problems as well, including declaring bankruptcy in 1991 at the age of 35.
Dave Ramsey’s business started from nothing and grew into one that was self-sustaining. However, Dave had to file for Chapter 7 bankruptcy to get out of under $4 million in debt. Dave’s financial struggles aren’t something he wants to talk about, but they are well-known.
6. Burt Reynolds
A native of Florida, Burt Reynolds grew up in a small town. He started his acting career at a local theater and went to Hollywood. Burt Reynolds’ personal life was just as hectic as his movie career, and that caused his financial problems. He had a string of affairs with married women, over 30 lawsuits filed against him because of bribes or unpaid bills, and numerous doctors sought payment after performing procedures on him.
The late great Burt Reynolds was no stranger to liabilities and B-309 forms. The actor came onto the scene in the 70s and had a successful career with roles in hits such as Smokey and the Bandit, Deliverance, and The Longest Yard. However, his net worth was about $10 million at its highest point, but he ended up declaring bankruptcy.
7. Meatloaf
Meatloaf’s bankruptcy filing made headlines in 1983 when the singer was forced to file for bankruptcy after he had to pay over $1 million in taxes. Meatloaf still maintained his net worth at $5 million, and he continued with his music career. However, he filed for bankruptcy again in 2010 with a total debt of $2 million.
It’s easy to think that all celebrities have large incomes and don’t have to worry about finances. However, that isn’t always the case. With Hollywood salaries falling for many celebrities, you can see that even the rich get sued, bad investments happen, and divorces destroy a lot of wealth.