Top 5 rich families that went broke
Rich families frequently believe that all they need is a paycheck to become wealthy. If they continue to make money and spend it, they will become wealthy.
Yet as we all know, there is much more to wealth than just wages. The example of those millionaires who didn’t think twice before spending and finally filed for bankruptcy can help us comprehend this better.
This article discusses the billionaires who have filed for bankruptcy or have stated that they are now bankrupt.
What causes a person to go bankrupt, especially when they have billions of dollars, you might be asking.
Several causes contribute to this, including poor investments, widespread fraud cases, the economic crisis, and many others.
The fact that they didn’t make any backup plans and continued spending their money is the key point here.
That is what caused their ship to sink! Having established the fundamentals, let’s go on to learning the tales of how these billionaires went bankrupt.
Mike Tyson
Contents
| Occupation | Professional Fighter |
|---|---|
| Reason for Bankruptcy | Debt |
We can start with Mike Tyson, a well-known boxer who used to make up to $22 million per match and finally amassed a lifetime income of $500 million.
According to the Benjamin Law, he nonetheless filed for Chapter 11 bankruptcy in 2003 while receiving such significant salaries. The enormous debt that brought him to ruin is the cause of this bankruptcy.
The debts were so substantial that the law company claimed Mike Tyson owed $38.4 million to the Federal Tax Agency and his ex-wife, Monica Turner, among other creditors.
Elizabeth Holmes
| Occupation | Founder and CEO, Theranos |
|---|---|
| Reason for Bankruptcy | Fraud |
Elizabeth Holmes, the founder of the amazing startup valued at $9 billion who made it onto the cover of Forbes, was compelled to file for bankruptcy.
She was found guilty of fraud through her business, Theranos. According to her company, a cutting-edge blood test that can quickly and easily diagnose hundreds of diseases and medical issues is being developed.
Later, however, it became clear that the corporation was nowhere near finishing the development of such technology.
Elizabeth Holmes is currently awaiting sentencing after being found guilty and faces a 20-year jail sentence.
Aubrey McClendon
| Occupation | Co-founder, Chesapeake Energy |
|---|---|
| Reason for Bankruptcy | Fraud |
Aubrey McClendon, co-founder of the oil and gas giant Chesapeake Energy, who has a net worth of $1.2 billion, is next in line.
Along with accusations of federal conspiracy, he was charged with unfair manipulation of bidding for drilling rights.
McClendon, however, passed away from the accusations a day later as a result of a tragic automobile accident.
According to sources, he amassed a number of debts and, at the time of his death, was insolvent.
Jocelyn Wildenstein
| Occupation | Socialite |
|---|---|
| Reason for Bankruptcy | Debt |
The woman, Jocelyn Wildenstein, was a prominent socialite who gained notoriety as a “Catwoman” due to her attractiveness.
According to rumors, she reportedly used to spend $1 million a year on shopping and $5,000 on her phone bill.
She was the ex-wife of the late Alec Wildenstein, a billionaire in his earlier years.
Jocelyn Wildenstein filed for bankruptcy later that year, claiming to have no money in her bank account.
Vijay Mallya
| Occupation | Former Owner, Kingfisher Airlines |
|---|---|
| Reason for Bankruptcy | Fraud |
Vijay Mallya, a well-known name in India, was an airline and liquor billionaire renowned for his opulent and high-flying way of life. He was the owner of the now-defunct Indian carrier Kingfisher Airlines.
Vijay Mallya reportedly racked up numerous bank loans for his aviation company at the beginning of 2012.
He borrowed money from the Indian bank, but he failed to pay it back, which prompted a search party to look for him there.
Yet, he obtained a diplomatic passport by joining India’s upper house of parliament before escaping to the UK.
According to a report, Vijay Mallya is charged with Rs 90 billion in money laundering and bank fraud.
His net worth was diminished after £1.145 billion in unpaid debts were recovered through a bankruptcy suit.
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