Inside bankruptcy and money struggles that plagued Aaron Carter’s adult life

Despite entering the world stage at the age of seven, the adult life of Aaron Carter was plagued by financial difficulty from the moment he turned 18.

Despite entering the world stage at the age of seven, and releasing hit singles and popular albums as a teen, the adult life of Aaron Carter was plagued by financial difficulty.

In light of the 34-year-old’s death, fans have reflected on the life of the former child star.

While he had released four studio albums by the age of 15, toured the world and starred in popular shows like Lizzie McGuire, Sabrina the Teenage Witch and 7th Heaven, Carter’s rising star deflated upon reaching adulthood.

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Aaron Carter appearing alongside Hilary Duff in the 2001 Lizzie McGuire holiday special. Picture: Getty Images

Singer’s $200 million fortune before 18th birthday

After working from the age of seven, Carter said he believes he had made more than $200 million (A$311.8m) before turning 18. Despite this, financial mismanagement by his parents, meant he never got to see a lot of his millions, he said in 2017 on the program, Oprah: Where Are They Now — Extra.

Under Californian law, guardians of child performers are required to place 15 per cent of their earnings into an account accessible only once they become an adult. Carter said that while he believes the sum should have been around $20 million (A$31m), he only received $2 million (A$3.1m).

Upon turning 18, he also learnt he owed $3.5 million (A$5.4m) in tax liens.

Aaron Carter claims his parents mismanaged his finances as a child. Picture: Alison Buck/ Getty Images for Project Angel Food.

Carter also claimed that a lot of the money he made was spent by his parents.

“We had this massive compound with 12 houses and it was worth over $10 million. I had paid a lot of that money … and I never got a lot of those returns back,” he said,

“There was a lot of neglect on my parents part. They didn’t do a lot of things right but at the same time I felt that money wasn’t everything.”

Despite this, Carter also said he didn’t hold his parents’ mistakes against them.

“I feel like it’s important for me to take the things that could be looked at as a negative and use the power of positive thinking and try to look at the glass half full versus half empty,” he added.

Filing for bankruptcy

In 2013, court documents tendered by Carter when he filed for a Chapter 7 bankruptcy revealed he owed $2,204,654 to creditors, as well as $1,307,648 in income tax debt and a $31,166 American Express bill. At the time he placed his assets at $8,232.16 and said his total financial liabilities totalled more than $2.2 million (A$3.4m).

“Aaron filed for Chapter 7 bankruptcy protection to alleviate past issues in an effort to move forward with his life and career,” a spokesperson told Yahoo at the time.

“The overwhelming majority of the debt he is asking to be discharged is from more than 10 years ago when he was a minor and not in control of his finances.”

Aaron Carter (left) alongside his older brother Nick in 2001 (right). Picture: Chris Delmas / AFP.

However, he continued to struggle with debt a year later.

Appearing on a reality TV show Life Or Debt in 2014, the singer said he was still in a “terrible position” financially.

“When I turned 18, I got hit with all those taxes. I filed a Chapter 7 bankruptcy last year; now I’m already over $100,000 in debt,” he said.

“It’s been really difficult for me. I want to have a life set up. I want to have a house. I can’t tell you how badly I want to have a home.”

Pursuits before his death

In the same 2017 interview with Oprah he said that despite filing for bankruptcy, he had made an effort to “rebuild” his life, including touring and writing music.

“My whole adult life, from 18 years old up until last year (2016), I have been figuring out how to resolve all of the bankruptcy issues in the least embarrassing way for myself and (in) the best way to protect people involved,” he said.

In 2020, Carter also turned to OnlyFans where he sold “exclusive, NSFW (not safe for work) content” to fans for $50 (A$78) to $125 (A$195).

Tragically, the singer’s last few year would continue to be plagued by scandal, from substance abuse battles to episodes of poor mental health, and a schizophrenia and bipolar disorder diagnosis.

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— AARON CARTER (@aaroncarter) October 18, 2022

In lieu of his passing, both his brother, Nick Carter and his teenage ex-girlfriend and friend Hilary Duff wrote about the difficulties he faced.

“I’m deeply sorry that life was so hard for you and that you had to struggle in-front of the whole world,” shared Duff, who dated Carter on and off between 2000 to 2003.

In an emotional tribute on Instagram, his brother and Backstreet Boy member also wrote: “I have always held on to the hope that he would somehow, some day want to walk a healthy path and eventually find the help that he so desperately needed.”

They were sentiments echoed by a spokesperson when they confirmed the former child star’s death.

“Aaron worked very hard towards the end of his life in recovery, to be a good father and to make amends with his family,” they said.

Originally published as Inside bankruptcy and money struggles that plagued Aaron Carter’s adult life