From Fame to Financial Ruin: Celebrities You Didn’t Know Went Bankrupt

Celebrities Who Faced Bankruptcy: Abby Lee Miller, Cyndi Lauper

 

From Hollywood luminaries to music legends, several famous figures have encountered financial turmoil, filing for bankruptcy during or after their careers. Some fought back and found a way to regain their footing.

 

Abby Lee Miller, the Dance Moms star, initiated Chapter 11 bankruptcy proceedings in 2010, attributing her financial woes to more than $400,000 owed in real estate taxes on her Pittsburgh dance studio. Investigations by the IRS and FBI revealed she had hidden $775,000 of her income during the bankruptcy. This ultimately led to Miller facing 20 counts of financial and customs fraud.

 

In 1981, iconic vocalist Cyndi Lauper found herself wrapped in a legal battle when her former manager demanded $80,000 after being let go. To address the situation and mitigate the financial strain, Lauper filed for bankruptcy, receiving court approval for her filing shortly after.

 

David Crosby, known for his contributions to music, hit a rough patch in 1984. The Crosby, Stills & Nash member struggled with significant debts, which prompted him to file for bankruptcy the following year. This period followed years of fame, overshadowed by issues tied to drug addiction and financial mismanagement.

 

Don Johnson, a star from Miami Vice, saw his fortunes shift dramatically when he declared bankruptcy in 2004. Once among the highest-paid actors in the 1980s, Johnson faced impending auctioning of his lavish Colorado ranch valued at $20 million.

 

Nickelodeon’s Drake Bell also encountered severe financial distress, filing for bankruptcy in 2014 with debts totaling $1.5 million. At that time, Bell’s monthly income was only $2,820, far too little to cover expenses exceeding $18,000.

 

Francis Ford Coppola, revered for his filmmaking prowess, faced significant financial setbacks, filing for bankruptcy three times in a span of nine years. Following the box office flop of One From the Heart in 1981, Coppola found himself with a staggering $71 million in debt, compelling him to seek Chapter 11 protection during the production of Bram Stoker’s Dracula.

 

Even supermodel Janice Dickinson couldn’t evade the grip of financial strain, declaring bankruptcy after accumulating about $1 million in debt, plus over $500,000 in unpaid taxes. Dickinson expressed remorse and commitment to repaying her creditors.

 

Actress Kim Basinger also faced bankruptcy in 1993 due to an $8 million lawsuit launched by Main Line Pictures when she backed out of starring in Boxing Helena. Her then-attorney noted that Basinger simply lacked the assets to fulfill such an exorbitant judgment.

 

La Toya Jackson found herself in a similar predicament, filing for bankruptcy in 1995 after being entangled in a lawsuit that demanded $650,000 for allegedly breaching her contract with the Moulin Rouge Club. She sought refuge in bankruptcy court again in 2010, but was denied.

 

Broadcasting icon Larry King declared bankruptcy in 1978, burdened with over $350,000 in gambling debts. This financial struggle came after a legal issue involving grand larceny prior to achieving success in Hollywood.

 

Mike Tyson, once a heavyweight boxing champion, faced his own financial dilemma, filing for Chapter 11 bankruptcy in 2004. Although he lost vast sums due to his extravagant lifestyle, Tyson has since maintained a net worth of around $10 million.

 

Reality stars PK and Dorit Kemsley had their financial struggles highlighted on The Real Housewives of Beverly Hills. PK had filed for bankruptcy in 2008 after the collapse of his business, and the issue became a focal point during tense confrontations on the show.

 

Another reality personality, Sonja Morgan from The Real Housewives of New York City, filed for Chapter 11 in 2010, listing debts totaling $19.8 million against assets of only $13.5 million. Following her case, she expressed relief that her financial troubles were finally resolved.

 

Comic book legend Stan Lee’s company, Stan Lee Media, sought bankruptcy protection in 2001 amid a multimillion-dollar stock manipulation scandal involving corporate officers.

 

The Giudices from The Real Housewives of New Jersey filed for bankruptcy in 2009, revealing debts over $10 million, including creditors and outstanding loans. Joe Giudice was later convicted of bankruptcy fraud in connection with their financial dealings.

 

Todd Chrisley of Chrisley Knows Best fame filed for bankruptcy in 2012, claiming nearly $50 million in debt while still showcasing a life of luxury on reality television.

 

Toni Braxton’s career has seen its ups and downs, leading her to file for Chapter 7 bankruptcy in January 1998 due to debts amounting to tens of millions of dollars. A second filing came in 2010, necessitated by continued financial struggles amidst her attempts to manage her obligations and provide for her family.

 

Wayne Newton turned to Chapter 11 bankruptcy in 1992 while carrying more than $20 million in debt, initiating a process to reorganize his finances.

 

Lastly, Willie Nelson faced steep challenges when the IRS seized property and closed his studio in the 1990s due to a massive tax bill of over $30 million. Nelson, however, chose not to file for bankruptcy, opting instead to maintain a positive outlook despite his situation.

 

These stories illustrate the precarious nature of fame and fortune, as many of these celebrities have navigated turbulent waters, experiencing the ups and downs that often accompany a high-profile lifestyle.