- Date : 25/07/2022
- Read: 3 mins
When a person fails to pay his outstanding debts the legal proceedings that follow are called bankruptcy. To avoid a debt situation, it is better to take debt management plans to pay back debts.
What is a financial mistake and how to avoid bankruptcy and insolvency?
A financial mistake is a mistake that a person makes and because of it the person could not pay his debt and may face bankruptcy and insolvency. Many Bollywood celebrities have made mistakes like that and almost went bankrupt. It may be a surprise but popular celebrities going bankrupt isn’t something very common to hear. Poor money management could lead to a lot of problems including bankruptcy and insolvency. It is better to manage properly and avoid debt situations. Coming out of debt is difficult and taking the help of debt management plans is very helpful. Here's how you can be on the Right side of debt
Financial mistakes made by celebrities
Celebrities make many financial mistakes and end up in debt. Here are the following mistakes you should avoid.
- Amitabh Bachchan: Amitabh Bachchan’s company Amitabh Bachchan corporation incurred losses of around 90 crores. He couldn’t get any films and had legal cases going on against him. He also had a tax recovery notice sent to him. He couldn’t avoid debt situations and had to mortgage his bungalow to Sahara India Finance.
- Anurag Kashyap: Anurag Kashyap could have faced bankruptcy and insolvency when his multiple projects and films like Bombay Velvet went beyond the original budget. The production partners i.e. Fox star studios wanted to part with the movie’s final instalment. However, he didn’t take this very seriously and he made it after the movie was released.
- Jackie Shroff: Jackie Shroff faced a financial crisis when his film ‘Boom’ failed at the box office. He couldn’t get many film offers and was running low on money. To avoid bankruptcy and insolvency he took a loan from Sajid Nadiadwala but he couldn’t pay the loan. He even faced court charges because of non-repayment. Salman Khan helped him financially during that time.
- Shah Rukh Khan: Shah Rukh Khan had to put a lot of money into fulfilling the dreams of his children by making a movie like Ra One. The movie was not a hit and during that time, his IPL team was continuously making losses. Shah Rukh Khan almost went bankrupt because of the failure of this movie and Kolkata Knight Riders.
Related: 8 Practical ways to get rid of debt
Celebrities made many mistakes in managing debt and face many problems including bankruptcy and insolvency. You must take advice from professional advisors for managing your money if you are running low on money. There are many debt relief agencies that provide professional help in managing their debt situations. Taking the help of these types of organizations is a better way of paying back the debt you owe to people or other organizations. Read this article to know about 5 Money behaviors that can push you to debt.