19 Celebrities You Should Never Loan Money To
Along with the fame of being a celebrity comes the big paychecks. However as many celebrities have learned if you don’t manage your money wisely your’re headed for trouble and maybe bankruptcy.
Watching one of the most popular reality TV shows on the air today you would never know it’s central figure had multiple bankruptcies. Donald Trump from the Apprentice, one of most well known real estate developers in the country, had huge financial difficulties in the early 1990’s. A recession coupled with high rate bank loans put his flagship Atlantic City hotel the Taj Mahal over 1 million dollars in debt. He was forced to file corporate bankruptcy, and was nearly bankrupt personally at the same time. In 1992 the Trump Plaza Hotel was also forced into bankruptcy. By 1994 he had managed to pay off most of his staggering 900 million in personal debt. However in 1995 Trump Hotels and Casino’s had over 2 billion in debt and was forced into bakruptcy a third time. He was able to restructure all of the loans and emerge with a profit but not before giving up majority shares in almost all of his comapnies. Surprisngly people still compete on TV to let the Donald teach them how run their business and finances.
After putting out two wildly popular albums and winning a Grammy, you would think singer Toni Braxton wouldn’t have much too worry about. However in 1998 she filled for bankruptcy owing 5 million dollars. The details of her spending habits were scrutinized by the media. Her monthly budget included $4,700 in rent, $4800 in telephone bills (those overage minutes are a killer), $600 on makeup, $2000 on clothing, $1,000 in flowers and other miscellaneous items. The pop superstar was barely getting by on $47,000 each month. No word if she’s working on a new song “un-break my piggy bank” for her upcoming album.
MC Hammer’s spending habits are are extremely well documented. His purchases include a 12 million dollar estate with 2 swimming pools, tennis courts, 2 million dollar marble bathroom flooring, and 2 gold plated “hammertime” entrance gates. He also had 17 cars including a Lamborghini, two helicopters, and a throughobred horse ranch. Surprisingly there was still some money to pay an entourage. At one point there were over 200 people on “Hammer Time” and they were burning through $500,000 every month. He filed for bankruptcy in 1996. In 1997 he appeared on Oprah and admitted he had gone through almost 20 million dollars. Maybe his accountant should have pointed at his money and said “can’t touch this”.
Kim Bassinger is another celebrity who was on top of the world and penniless then next. Kim had just purchased Braselton, a development town in Georgia, for 20 million dollars. This happened just before she agreed to do the movie Boxing Helena. She changed her mind, backed out of the project and in the end the film producers ended up taking her to court for breach of contract. She lost the case and was ordered to pay 8 million dollars. Unable to pay she had to sell the town and file for bankruptcy.
Mike Tyson may have been king of the ring but he eventually had to fight off 27 million in debt including 13 million in back taxes owed to the United States Governent. During his fighting career he earned an impressive 300 million dollars which he managed to completely spend on homes, cars, clothing, food and other extravagent purchases such as pair of pet tigers for $8,000. At the height of his flamboyant lifestyle he was spending over $400,000 a month. Is it any wonder Iron Mike’s checkbook went down for the count.
Debbie Reynolds was celebrated actress during the 1950’s and 60’s. She was popular on both stage and screen and won an academy award for her performance in the Unsinkable Molly Brown. She also had several songs reach Billboard’s top 40 list in the 1950’s and 60’s. She was a regualr on the Vegas Strip headlining performances. Eventually she tried her hand at opening her own Casino and museum and that’s where her luck ran out. She was forced into bankruptcy in the late 90’s. Ironically her Casino was purchased and is now used by the World Wrestling Federation.
Another Vegas icon aslo had problems with bankruptcy. Mr. Las Vegas himself Wayne Newton filed for bankruptcy. In 1990 he had amassed over 20 million dollars worth of debt and $341,000 in back taxes to the IRS. He was able to get out of debt and stay out of trouble until 2005. The IRS said he and wife Kathleen owed 1.8 million dollars for improper deductions taken from 1997 through 2000. Danka Shein Wayne from all of your fellow taxpayers.
Some celebrities are well known for their outrageus spending sprees, and if there was a list Michael Jackson’s name would be near the top. While he hasn’t offically filed for bankruptcy, things don’t look good when your finacial advisors throw in the towel. If reports are to be believed before filming “Living with Michael Jackson” he spent an estimated 6 million dollars in a few short hours. Let’s hope he has some money tucked away in that missing glove of his.
You have to wonder how a light hearted comedy with child stars managed to turn out so many bad apples. The pint sized powerhouse that uttered the signature phrase “what you talkin’ ’bout Willis” every week, probably didn’t do to well in his accounting classes. Gary Coleman, who at one time owned a multi million dollar mansion in California had less than $20,000 dollars in assets when he filled for bankruptcy protection in 1999. He learned “the Facts of Life” pretty quickly after that.
Actor Burt Reynolds has long and well established acting career starring in almost 150 films since 1959. With a resume that impressive it came as a shock to many that he was able to rack up almost 10 million dollars in debt. Through some creative legal manuvering and debt restructuring he was able to keep his 2 million dollar home thanks to Florida’s liberal bankruptcy laws. Looks like the bandit got away from smokey again.
Larry King one of the most popular radio and television talk show hosts has also had money problems. In the 1960’s when his career took off he racked up a large amount of debt. However his high flying lifestyle caught up with him and he had to file for bankruptcy in 1978.
Zsa Zsa Gabor and her sisters Eva and Magda were making headlines in celebrity gossip columns long before anyone else. Zsa Zsa had a well known incident where she slapped a Beverly Hills Police officer in the face and served three days jail time from the incident. In 1993 she got into a libel lawsuit with Elke Sommers and lost. The cost of the lawsuit and resulting judgement caused her to file for bakruptcy.
Don Johnson part of the super succesful pastel police force on 1980’s TV Show Miami Vice has also has had his share of money troubles. He had to sell of most of his assets including the iconic silver Ferrari Testarosa that was given to him personally by Enzo Ferrari and appeared in the show every week. Eventually he was able to repay 14.5 million and regain his private Colorado ranch. His former partner John-Michael Phillips would gladly play the role of a bankrupt actor just to get some work.
Marvin Gaye is one of the most talented and popular artists at Mowtown records. Despite all of his success he struggled with personal problems and drug addiction. After mounting tax bills he was forced to file for bankruptcy in 1979. He struggled personaly and professionally until 1982 when he released “Sexual Healing”. While his career was starting to get back on track privately he was still troubled with depression and relationship issues until his untimely death in 1984.
80’s pop star Cyndi Lauper experienced her own share of finacial difficulties. Early in her career Cyndi Lauper got critical accliam and everyone around here felt she was destined to become a star. Despite her best efforts and releasing her own albums sucess just never materialized, and in 1980 she was forced file bankruptcy and broke up with her band. Fortunately going solo helped her get noticed by David Wolfe and helped her realize her dream of girl’s just wanting to have fun.
LaToya Jackson who’s claim to fame is having bizare and much more musically talented siblings is also money management challenged. In 1998 she was overwhelmed with unpaid taxes and forced to file bankruptcy.
Of all of the celebrities who’ve ever had to file for bankruptcy Willie Nelson’s story was one of the most famous and misunderstood. While Willie took the brunt publically most of the fault was a result of a shady accountant who rode into the sunset leaving him with almost 17 million dollars worth of unpaid IRS bills. Mamas don’t let your babies grow up to be money grubbing accountants …
While Mr Jefferson might have been moving up to a deluxe apartment in the sky, the actor playing Mr. J wasn’t doing quite as well. Sherman Helmsley filed for bankruptcy in 1999 with an additional 15,000 dollars in unpaid IRS taxes. Weezy must have been so ashamed.
When Meat Loaf burst onto the scene in the late 70’s with the smash album it looked like he had hit pay dirt. However less than ten years later he was singing a different tune, this time it was “like a bat outta cash I’m gone when the morning comes”. In 1986 he filed for bankruptcy with 1.6 million dollars worth of debt.
