Christopher Biggins, yet another of the ‘I’m a Celebrity’ alumni to have faced bankruptcy, is now back in the black and thankful for his experience. He provides an insight into the financial factors that can have such an impact on the lives of those that do not have the benefit of a stable income. For celebrities, or those in the entertainment industry, there are few jobs that guarantee a stable income for an extended period. However, even though the work can come and go, the spending is constant. This is an understandable situation to people who are self employed but essentially, the spending habits of celebrities are in a different league to most of us. This doesn’t mean that their excessive spending can’t serve as a cautionary tale though.
For Biggins, when the work didn’t come in fast enough to keep pace with the spending, his mounting debt spiralled out of control. He took financial advice and decided that enough was enough. He was advised that declaring bankruptcy was the best option for someone facing his level of debt and has recently been quoted as saying that declaring bankruptcy was the best thing that’s ever happened to him.
Why would such a severe debt solution be the best solution to his spiralling finances? Well, for Christopher Biggins and those others that struggle to keep control of their spending, the bankruptcy petition limits your access to credit, allowing you just a basic bank account. For those that lack the discipline to manage their own personal finance, bankruptcy can take away some of the temptation to spend. It’s not the only debt solution on the market though. Bankruptcy is the most severe of the debt solutions and can have serious implications. There is the chance that you could lose your home or other valuable assets to service your outstanding debt. For many, an Individual Voluntary Arrangement could prove to be a far more attractive proposition.
Your first step should always be get debt help from a specialist debt advisor at the earliest available opportunity. With an IVA, providing you stick to an agreed payment plan, which is normally a term of 60 months, your creditors will write off any remaining debt. They will also freeze the interest on your debt and together with an Insolvency Practitioner, you’ll draw up an agreement with your creditors to repay your debt in reasonable, affordable monthly payments. As one of the longest serving and most respected financial institutions in the UK, Harrington Brooks can provide the dedicated, professional support you need to guide you through this difficult time.
Although Christopher Biggins was able to keep hold of his home and other valuable assets, like his extensive art collection, things could have been very different. For many, bankruptcy proceedings lead to seizure and repossession of these assets in order to pay off the debt. A key benefit of the IVA over a bankruptcy order is the security it provides to your assets. Upon reaching an agreement on the terms of your IVA with your creditors, there is a reduced possibility that your home or any other significant asset will have to be sold in order to service your debt. There is also still a certain stigma surrounding bankruptcy and an IVA has the added benefit of being more private, not being published in your local newspapers and the London Gazette, although details are available online.