Celebrities typically make it big in their line of work, which then leads to a lot of money. They end up spending it in crazy ways by collecting things, from expensive cars to knives. However, many celebrities get too reckless and end up blowing all of their money.
Sometimes debt ends up snowballing on them, or they forget to set aside money for taxes. This results in celebrities getting in huge financial trouble or sometimes, even jail time. So who are the latest broke celebrities to fall victim to this? Here are seven celebrities who went broke in 2018.
7 shocking celebrities who literally went from riches to rags. We assume that everyone who is famous is loaded. And it’s true that successful actors, musicians, and superstar athletes get paid more than most professions. However, it’s not always the case. Sometimes celebrities spend it all or lose it all.
7. Teresa Giudice
The Real Housewives of New Jersey star is now out of prison, but has to wait for her husband to finish serving time. The couple pleaded guilty to forging loan applications and lying to the IRS. Her $13.5 million bankruptcy case was reopened, according to Reality Tea. The couple also has a pending $5 million lawsuit against their bankruptcy attorney for malpractice.
6. 50 Cent
The rapper and TV show executive producer has notably fallen on hard financial times. But this year his Chapter 11 bankruptcy case has finally been settled. According to TMZ, he now has to pay out $23 million to his creditors over the next five years. He isn’t completely down and out since his show is still on the air and he has other business ventures. However, this is a financial setback.
5. Swizz Beatz
The rapper and producer also hasn’t been great at managing his money. This year he got hit by the IRS for owing almost $280,000 in taxes from 2015, according to Bossip. That’s not all, he was also notified that he owes $88,662.94 in taxes for 2014. This is a pretty tough situation given he just paid $732,000 in taxes to address unpaid taxes from 2006. It looks like he keeps trying to catch up, but is just falling further behind.
4. Petey Pablo
The “Freek-A-Leek” rapper has run out of money this year. He filed for bankruptcy, specifically Chapter 11, in April and claimed to be less than $50,000 in the hole, according to TMZ. Pablo wants a payment plan in order to pay his creditors. However, this is not his first rodeo. He also filed for bankruptcy in 2009 and 2010. His creditor includes the IRS, Planet Fitness, Enterprise, Ford Motor Credit, and law firms according to Bossip.
The rapper definitely had a good series of hits and was popular a decade ago. But now, he is being chased down by the government over taxes. According to TMZ, he owes over $2 million in federal taxes and the IRS can start seizing his assets and property. That’s not all, he also owes $149,511 in unpaid state taxes.
Strangely, the news really hit fans hard and #SaveNelly started trending. People started posting pictures of them buying his music in order to help him with his debt, according to BuzzFeed. The streams of “Hot in Herre” went up by 90% a week after the news broke, according to Billboard. Chances are this won’t make a dent in his debt since artists rarely get a significant cut from their music sales, but make most of their money from touring.
2. David Hasselhoff
The Baywatch star had to go public with his finances when he tried to lower his spousal support payments. According to TMZ, his ex-wife Pamela Bach was getting $252,000 a year from Hasselhoff. The two have been divorced since 2006 after 16 years of marriage. He claimed to be struggling to make the payment and only had $4,000 in liquid assets. He also claimed that he “recently had to withdraw additional funds from my retirement plan in order to pay for my living expenses,” according to People Magazine.
His main income has been coming from a European tour (with poor ticket sales) and his reality TV show, Hoff the Record. He also has $1.79 million in assets which include real estate, retirement savings, cars, jewelry, art, and more. The two later agreed to lower the alimony payments to $10,000 a month according to People Magazine.
The rapper has certainly had a roller coaster of a year. He was taken to court by his landlord for not paying rent in August. He eventually had to pay $186,000 in delinquent rent and reached a settlement with the property owner. There was also a bench warrant issued for his arrest because he failed to appear in court. However, this was recalled since they reached a settlement, according to ET.
Then Tyga had a 2014 Maybach 62 S Landaulet convertible that was taken after he missed multiple payments. According to TMZ, he never got the car back. In September, the rapper’s Ferrari was repossessed because Tyga failed to pay multiple lease payments. The man who repossessed the car reportedly used a spare key to get into the car and drove off with it. Tyga did however get the car back a week later, but this wasn’t the end of Tyga’s money woes.
A woman who acted as the middle man in leasing a Range Rover to Tyga filed documents to repossess it, according to TMZ. The sad thing is that the rapper had given it to his mother. The monthly payment on it is reportedly $1,000 a month. The woman is claiming that multiple payments haven’t been paid and she now reports it as stolen.