14 Celebrities Who Lost It All Financially

Celebrities who have faced financial disasters, have really lost it all. If you think you had a bad financial year, just take a look at the following stars and know you’re not alone. Whether these celebrities filed for bankruptcy, made poor investment decisions or finalized divorce papers, each star was hit with a financial loss, losing everything, including their wealthy lifestyle.

Stephen Baldwin1. Stephen Baldwin

Stephen Baldwin filed for bankruptcy in the summer of 2010, on more than $2.3 million in personal debt, including more than $1 million owed in . The star of “The Usual Suspects,” and more recently a reality TV star, became a victim of the housing market collapse after he took out a second mortgage on his $1.1 million home and became “underwater” on the loan.

2. Kim Basinger

Would you quit a job if it cost you $9 million? Well, Kim Basinger did just that. A judge ordered Basinger to pay a film production company for failing to honor her commitment to star in the movie “Boxing Helena.” Apparently she didn’t save enough of her previous earnings to pay the bill; she ended up losing $19 million when she had to sell the town of Braselton, Georgia which she purchased in 1989 and had to file for bankruptcy.

3. Nicholas Cage

Owing more than $6 million in back taxes to the IRS, the “National Treasure” star still blames his former manager, Samuel J. Levin for his million dollar losings to risky and speculative investments. To settle up accounts Cage sold his castle in Bavaria; he also lost two of his homes in New Orleans to auction after falling into foreclosure.

4. John DalyJohn Daly

Losing nearly $60 million in gambling, John Daly admits to his addiction and loss in his 2006 autobiography, “My Life In and Out of the Rough: The Truth Behind All that Bull**** You Think You Know About Me”.

5. Lenny Dykstra

Within three months after an interview on ESPN.com, Dykstra, who claimed to be worth over $60 million, filed for bankruptcy, stating he held just $50,000 in assets. The former New York Mets and Philadelphia Phillies center fielder may have been pitching “winning” investment tips through his “Nails on the Numbers” newsletters since retiring from major league baseball but apparently he wasn’t heeding his own advice.

6. Zsa Zsa Gabor

The ninety-two year old Gabor was one of convicted Ponzi scheme con artist Bernard Madoff’s celebrity victims. Her lawyer estimates that the actress lost $7 million to Madoff and is now having to pay off back taxes of $118,000 in addition to the loss. Actors Kevin Bacon and his wife Kyra Sedgwick were also Madoff victims. The couple reportedly lost “everything but their real estate and checking accounts” to Madoff’s $50 billion scam.

Kate Gosselin7. Jon & Kate Gosselin

When their marriage and their “hit” reality TLC series (Jon & Kate Plus 8) came to an end, so did the couples earnings. Losing their $3 to $4 million salary from the cable TV company, not to mention all of the freebies they have enjoyed as a result of their show including trips, clothes and toys for their brood of elementary-age children.

8. Victoria Gotti

Daughter of deceased mobster John Gotti, this TV reality show star (“Growing Up Gotti”) filed for bankruptcy after her mansion in Long Island went into foreclosure. Blaming her financial misfortune on her ex-husband’s imprisonment, she lost the home after the bank reported that she owed more than $650,000 in back mortgage payments.

9. Evander Holyfield

This world heavyweight boxing champion may have earned nearly $250 million during his time in the ring, but he’s lost enough of that fortune to have gone into foreclosure on his 109-room home in suburban Atlanta. Holyfield cites two divorces and numerous failed business investments for his loss.

10. Billy Joel

When it comes to finances, this Grammy award-winner hasn’t enjoyed the same string of success as his musical hits. He has had to file for bankruptcy and filed a $90 million lawsuit against his former manager (and former brother-in-law) Frank Weber for losing tens of millions of dollars as a result of fraud, risky investments and unauthorized loans.

11. Ralph Lauren

Apparently even billionaire fashion titans aren’t immune to the effects of the global recession. As people have tightened their purse strings, they are passing on designer fashion for more frugally priced outfits. The combination of fewer buyers and a massive stock market decline has put a significant $1.7 billion dent in Lauren’s personal wealth.

Star who lost it all

12. Paul McCartney

“Can’t Buy Me Love” can’t buy Paul McCartney out of a prenuptial agreement, with his divorce from Heather Mills in 2008 costing him close to $50 million.

13. Willie Nelson

Willie Nelson went “on the road again” to raise the $16.7 million in back taxes he owed the IRS after filing for bankruptcy in 1990. Able to laugh at his misfortune he recorded “The IRS Tapes: Who’ll Buy My Memories” to help settle the bill after the government seized his bank accounts and numerous homes, and later went on to star as a spokesperson for the tax preparation firm H&R Block in Super Bowl ads.

14. Michael Vick

The Philadelphia Eagles’ back-up quarterback is just grateful to have a job these days. He was signed to the team after finishing a 19-month sentence at the federal penitentiary in Leavenworth, Kansas for being found guilty of a federal dog-fighting conspiracy charge. That choice cost the formerly Nike-sponsored athlete $135 million. In 2005 Vick was listed as the 33rd most powerful celebrity by Forbes magazine; three years later he was forced to declare personal bankruptcy.
Learning about celebrities and their financial disasters kind of makes us think they’re a little like us, right?
Original article courtesy of Investopedia

 

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