3. Burt Reynolds
The loss: Ironically, it was an investment in a restaurant chain called Po’ Folks that partly led to Burt Reynolds’ Chapter 11 bankruptcy in 1996. But only partly. That followed an expensive divorce from actress Loni Anderson and massive spending, including on a 12,000-square-foot Florida mansion he named Valhalla.
The lesson: A separation or divorce is a common reason for filing bankruptcy. “You lose half your income overnight,” Bovee said. And you end up with two households to manage. In that situation, you need to spend less, not saddle yourself with more debt.
