Rap star MC Hammer reported to owe $10 million; files for bankruptcy protection in California

Jet, April 22, 1996

Grammy Award-winning rap star MC Hammer recently filed for bankruptcy protection, saying he can't pay the $10 million he owes creditors.

"It's time to stop the bleeding and get on with my life," MC Hammer said in the Hollywood Reporter, a day after he filed the petition in Oakland, CA, aimed at giving him and his wife time to reorganize their finances.

"It's time to close out old business and stop being the lottery for people who see MC Hammer as this big celebrity with a bottomless pit of dreams for people," he added.

MC Hammer often traveled with a huge entourage and had concerts with more than 60 performers and 100 more people backstage, the Hollywood Reporter said.

The rap star, who estimated his assets at $1 million, skyrocketed to fame with his 1990 album, Please Hammer Don't Hurt Em, that featured the hit U Can't Touch This.

After his debut album, Forbes magazine estimated his gross earnings at more than $33 million.

MC Hammer claimed debts of $10 million, including $750,000 in property taxes, $1 million to two attorneys and another $1 million to his merchandiser, Winterland Prods., the Hollywood Reporter said.

The entertainer has 15 days to come up with a plan to pay his debts.

He is reportedly negotiating to sell his sprawling custom-built mansion in Fremont, CA.