Reports are swirling that the Duchess of York is in a mad dash to pawn off her personal assets in a bid to avoid bankruptcy. According to reports, Fergie is planning to sale a painting, Emma Sergeant’s six-foot high depiction of Orpheus in the Underworld, which could fetch approximately £20,000. Reportedly, the Duchess has already pawned off her personal jewelry and wedding gifts in an effort to avoid bankruptcy; but despite her efforts she still owes millions of pounds of debt she incurred after the collapse of her company. And some observers are saying that Fergie may not have enough assets to repay all of her debts like some of her predecessors who have avoided bankruptcy.
Selling a few paintings is not unknown for those associated with the British Royal Family; earlier this year, Princess Diana’s brother, Earl Spencer, sold millions of pounds’ worth of art to preserve a stately home. However, it’s unlikely that the Duchess has any such asset.
If it’s true that Fergie does not have enough assets to satisfy her debts, the auctioning off of her assets in an attempt to avoid bankruptcy could be the biggest mistake of her financial life. It is unwise for debtors to attempt to sell off assets in an attempt to avoid bankruptcy especially if the selling of those assets would not eliminate all of the debt. Remember, when a debtor files bankruptcy there are certain assets that are protected in the bankruptcy. That is the purpose of bankruptcy, to protect your assets while simultaneously repaying creditors as much as possible. Do not squander your energy and money attempting to sell off assets to avoid bankruptcy when selling of those assets will not satisfy all of your debts or selling those assets will place you in a vulnerable financial position.