How can someone with that kind of cash throw it all away? Iverson has a history of gambling issues and was sued in August 2011 for $2.5 million. He reportedly could not cover the $860,000 judgment against him.
Iverson is hardly the only multi-millionaire to go broke, especially in the world of sports. Below are five other athletes who list it all.
Once the undisputed heavyweight champion of the world, Evander The Real Deal Holyfield made an estimated $250 million during his career. In 2008, Washington Mutual foreclosed on Holyfield's $10 million estate near Atlanta.
Nicknamed Nails for his hard playing style, former New York Mets and Philadelphia Phillies centerfielder Lenny Dysktra filed for Chapter 11 bankruptcy in 2009 after reporting his net worth at $58 million in 2008.
Walker, a former forward for the Boston Celtics, filed for Chapter 7 bankruptcy in May 2010, listing his assets as $4.3 million and debts at $12.7 million.
Walker's NBA career spanned 13 seasons, seven with the Celtics. He is currently a member of the Idaho Stampede, a team playing in the NBA's Developmental League.
One of the most feared linebackers during his playing days, former New York Giant and Super Bowl Champion Lawrence Taylor filed for Chapter 7 bankruptcy in 1998 after being behind $350,000 on his $605,000 New Jersey home.
Iron Mike Tyson became the youngest boxer to become heavyweight champion at age 20, earning $300 million over his 20-year career. Tyson got into financial trouble and had to file for bankruptcy in 2003.