Written by Esma Refik in June, 2008

Celebrities are going bankrupt more frequently these days. It’s a shame to see these men and women work so hard to reach their goals and then not manage their lifestyles.

Mike Tyson earned over $300 million at the peak of his boxing career. Sadly, Tyson filed for bankruptcy in 2003 stating that he reached a staggering $27 million debt, including $17 million in back taxes he owes in the U.S. and Britain.

Like many Bankrupts, Tyson claims his ex-wife and ex-business partners caused the boxer to go bankrupt. But, like all bankrupts, Tyson needs to take responsibility for the loss of his fortune himself.

The problem occurs when celebrities implement a “must-have” lifestyle. For example, Michael Jackson purchased ten artificial intelligence Sony AIBO dog robots at $5,000 each, and it takes over $200,000 a month just to maintain and run his home.

The 16th President of the United States, Abraham Lincoln, filed for bankruptcy twice to start over. A few other notables who have filed for Bankruptcy are:

• Kim Basinger, Oscar-winning actress (1993)

• Frank Baum, Wizard of Oz author

• George Best, Manchester United soccer

• Lorraine Bracco, Oscar-nominated actress (1999)

• Natalie Cole, singer

• Gary Coleman, actor (1999)

• Francis Ford Coppola, Oscar-winning film writer/director/producer (1999)

• Walt Disney, Oscar-winning film producer, animation and theme park pioneer

• Henry Dunant, Red Cross founder

• Henry Ford, automobile manufacturer

• William Fox, Co-founder of 20th Century Fox Film Corporation (1936)

• Marvin Gaye, singer (1970’s)

• Bob Guccione, publisher and founder of Penthouse magazine (2003)

• Isaac Hayes, Oscar-winning songwriter composer/musician-singer (1976)

• LaToya Jackson, rock star (1995)

• Larry King, talk-show host and best selling American author (1978)

• Meat Loaf, rock star (1983)

• Burt Reynolds, Oscar-nominated actor/director, American author (1995)

• Debbie Reynolds, Oscar-nominated actress/singer, American author (1995)

• Anna Nicole Smith, model/actress and 1993 Playboy magazine “Playmate of the Year” (1996)

These high profile celebrities all filed for bankruptcy protection. Like these celebrities, many people have found themselves leading a lavish lifestyle and gotten themselves deep into debt. The price to pay for bankruptcy causes family breakdowns and other severe consequences. No matter how high your income is, not keeping to a budget and taking care of your finances will send you bankrupt.