Top celebrities that went broke is a list of famous people that have had to file bankruptcy. These are the Hollywood stars, actors, and celebrities that managed to get in too far over their head and had to turn to the government to hold off their debtors. It's not uncommon for celebrities to file for bankruptcy as most of them come from a background of having little to no money, so when an influx of cash comes in they were not prepared to handle it. Some of these celebs, like MC Hammer, took some bad advice and invested their money poorly, but others, like Burt Reynolds, just made poor decisions with how they chose to spend their money.Who are some bankrupt celebrities and broke movie stars? A running theme in a lot of these instances are too many hanger-ons in bloated entourages, with "friends" spending all of the money the celebrity makes on frivolous things like parties, cars, and drugs. Good thing there is such a thing as chapter 7, so these bankrupt actors and celebrities gone broke could wipe the slate clean and build again.