The truth about bankruptcy
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Being bankrupt doesn’t have to spoil future plans, and these famous people prove it!
If someone were to say to you that they’ve been made bankrupt, what would it make you think? That they’re a failure? That they’re irresponsible, or should be ashamed? Or do you just think that these things happen sometimes and it’s really no reflection on the person?
If you chose the last option, you’d not be far off the mark. Yes, of course some people make mistakes and end up bankrupt because of poor financial decisions or sometimes because they took a business risk that didn’t pay off. But others end up there because of a set of circumstances that are beyond their control, such as illness, separation or the death of a spouse.
And it’s not just ‘normal’ people who go bankrupt, celebrities do too! So, even loads of money and accountants can’t save some people.
Here are some celeb-bankrupts and the reasons they got into the situation in the first place.
Kerry Katona - the pressure to provide. Katona has said publicly in The Telegraph that she feels that she handles money differently from other people and feels that all the financial burden is on her, ‘Money's an issue for me. I'm really weird around money. I feel like I have to pay and bought my husband […] whatever he wanted…’
Some people have real problems saying no to others and feel ashamed if they can't provide the things their family enjoy. This in itself can be a reason that people get into trouble. It’s so important to be realistic about what you have and what you can provide. Buying things for people is not the only or the most important way that you can show that you care, and you shouldn’t always feel like you have to pay.
Lady Gaga - taking a risk. Apparently, Lady Gaga made herself bankrupt to finance her own tour – believing that it would work out and she’d be able to make the money back, and more. She’s quoted in the Daily News as saying, “I had $3 million dollars in the bank to my name and I threw it all in to make my stage. So I was bankrupt during the show."
Of course she was right and the rest is history. Now, we’re not suggesting that you blow everything you have in the world on that business idea you had a couple of years ago! But the point of this inspirational story is that Lady Gaga never stopped believing in herself and found a way back to being in a great financial position after being in dire straits – there’s nothing stopping you doing that too!
Simon Webb and Duncan James - not planning for the future. Simon Webb and Duncan James, from boyband Blue, have both gone bankrupt since the band broke up. In the Mirror, both Web and James have spoken out about their money problems. Webb blames over-spending on unnecessary items when he had money, and James has been quoted as saying that he felt relieved after filing for bankruptcy, as it meant he could start over with a clean slate. James wanted to pay back the loans he’d taken out, but knew that realistically he was never going to do it and that the debt was completely unmanageable – ‘Before I went bankrupt, I had been trying to pay off loans for years and felt as if I was drowning.’
So it doesn’t matter whether you’re earning millions or you’re on a more modest income, the same financial principles of saving and borrowing and investing wisely apply. It’s sometimes strange to think that anyone who has enjoyed fame and fortune could go bankrupt, but as we’ve shown you, it can happen to the best of us – even Walt Disney the founder of the “happiest place on earth” went bankrupt! He also went on to found a company that is now worth $179.5 billion! Quite the comeback we’d say.
It has to be said that this debt solution is not without its consequences and is not an easy fix. But the point is bankruptcy does not mean the end of your dreams – it may even provide the fresh start you’ve been looking for. We’d suggest you read through our bankruptcy guide to find out if it might be a good solution for you.
For more info on this and other debt solutions, contact us using one of the options to the left and one of our experts will answer your questions.
by Christine WalshBack to blog home