Celebrities whether actors, singers, or TV personalities are often seen in public with their fancy clothing, accessories, cars, jewelries, and basically expensive lifestyle.
Many celebrities you know and are familiar with do make millions from their careers and business ventures, but there are also some who “only” pretend to be rich.
Behind their lavish appearance, they have mounting debts that outweigh their annual income by far.
Bad investment and tax avoidance as well as the plain and simple irresponsible spending over the years have sent them down the hole of financial disasters.
Just because they look rich, it does not necessarily mean they actually have money to sustain their habitual expenses.
Since they are used to extravagant lifestyle, they end up owing massive amount of money to the bank in order to maintain their celebrity-status and keep up with the superstar social circle.
Such decision eventually bites them back hard and forces them to declare bankruptcy. Here are just few of them.
Earl Simmons, known professionally as DMX, filed for Chapter 11 bankruptcy protection in July 2013. It appeared that the event was just the tip of an iceberg.
About two years after the filing, he was arrested twice: first in June 2015 for robbery in Newark, New Jersey and standing child support, then again a month later for failing to pay $400,000 in child support, for which he was sentenced to 6 months in jail.
In the 2013 case, he listed a monthly income of $5,000; however in 2016 filing, he listed two large debts including a bank loan of $950,000 and family law debt from settlement or divorce of more than $2 million.
9 Ja Rule
In April 2017, thousands of people spend $5,000 for admission fee to what-should-be a festival of a lifetime on a private island in the Bahamas.
It was called the Fyre Festival organized by McFarland and supported by investors by a number of celebrities including Ja Rule.
The festival turned out to be a fraud where the promised luxury experience ended up as a poorly-organized party filled with disappointment.
It was nothing but a fraud, which led McFarland and Ja Rule to a run-in with the authorities and legal fee of $26 million. Before that in 2011, Ja Rule was sentenced to prison time for tax evasion case.
8 Bow Wow
Going from Shad Gregory Moss to Lil’ Bow Wow and then simply Bow Wow was not the only peculiar thing the rapper has done in life.
He has been a subject of criticisms for posting photos depicting a seemingly lavish lifestyle with cars and cash, which apparently did not belong to him at all.
In March 2012, he was ordered by court to pay $3,000 per month for child support, but just few months later he claimed that he was broke and making “only” $4,000 a month.
7 50 Cent
No celebrity ever in recent times that epitomizes the journey from richness to penniless better than 50 Cent.
In July 2015, he filed for bankruptcy in which he stated that his debts were close to $32.5 million, exceeding his total assets worth of $24.8 million.
However soon later he posted a photo to his social media account with piles of cash.
Just about a year later, he was ordered to pay $23.4 million or about 72% of his total debt, and he complied with the ruling.
He reached the target early, helped by the $13.65 million settlement, which he received in legal malpractice lawsuit. Now he probably is not as rich as he used to be, but not as broke either.