Does more money mean that things get easier or does it bring on more problems? There are plenty of examples in the media of celebrities with serious money problems, proving that even an impressive bank account doesn’t shield us from going into financial difficulty. But just because someone hits a rough patch doesn’t mean that there’s no chance of recovery. Plenty of the rich and famous who fell into tough financial times worked hard to bounce back from a serious setback like bankruptcy.
A Consumer Proposal Is a Bankruptcy Alternative
In some cases, bankruptcy is not the only option available to someone faced with insolvency. When you meet with a Licensed Insolvency Trustee (formerly known as a bankruptcy trustee) for credit counselling, you might find out that a consumer proposal is the most appropriate form of debt relief for your situation. You might be wondering how a consumer proposal affects your credit, which is a reasonable concern. The good news is that it has less severe consequences than filing for bankruptcy, meaning that it’s a good choice for those who are already focused on bouncing back from their financial hardships.
What Does Debt Relief Look Like?
The purpose of debt relief is to help those who are insolvent, thereby reducing the amount of debt that is owed to something that can be realistically paid back. While a consumer proposal is a great bankruptcy alternative, sometimes bankruptcy is the best course of action. It all depends on a person’s individual situation and the assessment from a bankruptcy trustee. With that in mind, here are some famous celebrities who encountered bankruptcy in their lifetimes.
The Motown legend had many highs and lows in his extraordinary life, with bankruptcy as a result of unpaid alimony being a significant low point. Gaye declared bankruptcy in 1976 and as part of the settlement with his former spouse he agreed to pay all the royalties from his next record, aptly titled “Here, My Dear.”
Before becoming the recognizable TV personality that he is today, King’s journalism career took a serious hit in 1978 as a result of criminal charges and financial troubles. Over $300,000 in debt, King filed for bankruptcy in the late 70s and also faced charges of grand larceny at the same time. He eventually found his was to broadcasting with the Larry King Show, which aired for the first time that same year.
In the early 90s, Basinger reneged on a movie agreement and as a result was ordered to pay over $8 million to the production company. That sum was too much for Basinger and she declared bankruptcy. One of her liquidated assets was a small town in Georgia, which she had purchased with investors with the intention of turning it into a tourist town. The town has grown without Basinger’s involvement, meaning a happy ending for Basinger and more.
Financial Help Is Available
Big movie contracts might not be the reason for your financial struggles, but knowing that even the brightest stars fall on dark times can be a comfort to some. When you start to feel the pressure of debt is causing stress in many aspects of your life, turn to professional help from a bankruptcy trustee. You can bounce back just like these celebrities did and get a fresh start no working towards your financial goals.