2. MC Hammer
He has sold over 50 million records worldwide and one might wonder how exactly a hip-hop star this big goes completely broke. Easy, spending was his favorite word in the dictionary.
MC reportedly earned over $33 million in the early 1990s, however, he managed to quickly blow all his wealth thanks to his lavish lifestyle.
Forbes Magazine states Hammer’s bankruptcy first emerged during delays between albums “Too Legit to Quit” and “The Funky Headhunter,” when he spent much of his money on staff and personal luxuries.
He was soon $13 million in debt and with his albums sales going down, many unpaid loans, large payrolls and a lavish lifestyle, Hammer eventually filed for bankruptcy in April 1996 at a California court.
Unfortunately, he never managed to recover completely.