Yes, and it puts an interesting construct on her steadfast refusal to declare bankruptcy. And the rumor that Sarah gave part of her marital settlement to her mother remains just that, an unsubstantiated rumor.
I should first like to say 'thank you' to everyone who has posted their gratitude to me for my posts. And please accept my apologies for being slightly tardy posting my thanks, but I was away from home in order to attend The Grand National.
It's hard to provide a concise summary, but were Sarah to petition for bankruptcy [or one of her creditors petition to make her bankrupt,] AND if the Court then did GRANT the petition for bankruptcy, under the principles of English Bankruptcy law, the 'ownership' of all 'valuable assets' belonging to Sarah would pass to the Official Receiver, with a view to being sold, with the proceeds then going to meet the claims of her creditors.
On this basis, yes, I think that she would definately lose the 'Barrantes' Estancia. I do not know whether she owns any other real estate. She was rumoured at one time to have property in the USA, but I do not know whether these reports were in any way accurate.
On becoming bankrupt, Sarah would also 'lose' all her jewellery (and she does have a fairly substantial collection of 'private' jewellery) including generous presents from the Queen [ Tiara, suite of diamond jewellery that was temporarily stolen from her luggage in New York etc], and over the years I remember reading that the Duke of York had given her many presents of jewellery.
She would lose any valuable antique furniture she may have, and also any other 'luxury' items.
Your Trustee in Bankruptcy does leave you 'basic' 'ordinary' furniture, and your TV and DVD player etc, but everything else has to go. Usually you are left with your clothes [on the basis that you 'need' something to wear] and also for a practical purpose - most clothes, if sold, would realise very little, after subtracting the expenses of sale.
Arguably, assuming Sarah has retained much of her wardrobe, and we don't know this, I suppose a case could be made for saying that she now has no need of her 'public clothes', many of which could be worth selling - I know that during the early stage of her marriage she dressed in Yves Saint Laurent and other comparable designers; many of these clothes would now be regarded as 'vintage' and could [theoretically] command reasonable prices, which could be even higher if an auctioneer was able to extract a premium on the basis of the provenance of the clothes [e.g.' suit by Alistair Blair, worn during the formal announcement of her betrothal, and much photgraphed...' etc.)
Now, this is speculation on my part, but I think that Sarah, like most of us, would be upset to lose her personal possessions, which she would if she was declared bankrupt. However, the real difficulty that Sarah would have to face if made bankrupt is, in my humble opinion, the HUGE restriction it would place on her travel. Currently, the USA does NOT let a bankrupt enter the United States. I think that there is a similar restriction in place by Switzerland.
To put it bluntly, if Sarah could not visit the USA, her major source of earning would presumably be seriously affected; arguably, interested tv companies could come to the UK to film her for features and shows [f the tv companies thought the expense was viable] but Sarah would not be able to continue with her American-based public-speaking career or undertake any personal commerical appearances.
So far as entry to Switzerland is concerned, it would appear to rule out her skiing holiday.
Bankruptcy lasts for a period of at leat a year from the date a person is declared bankrupt [it can be for more than a year, but is usually a year]. During this time, although Sarah could have a bank account, she could not at any time 'seek credit', which could affect her ability to operate a credit card account etc. This restriction alone could well impact on her daily life.
Oddly enough, generally speaking, bankruptcy seems to carry less of a stigma than it did when I was young. [in fact, at one stage in the not-too-distant past, bankruptcy had a 'criminal stigma' and you could be imprisoned.] How it could affect Sarah is a moot point - generally, there is a good deal of sympathy towards some bankrupts, as an example, a small local businessman whose business has failed because people to whom he extended credit failed to pay him etc. It is purely my own opinion, but I suspect that Sarah would not necessarily receive much sympathy if she were to be declared bankrupt. And apart from any travel restrictions that bankruptcy would place on Sarah, it might impact negatively on her 'brand'. These though are just my own opinions.
In conclusion, it is my view [which is only my opinion] that if Sarah was to be declared bankrupt, although it would 'wipe the slate clean' after a year or so [depending on the length of time ordered by the court], it would have quite an impact on her beyond that time because of the affectit would have on her 'brand'. For this reason, the Individual Voluntary Agreement route that she apparently has taken would appear to be her best way forward. It carries less of stigma [you are not bankrupt], she could still travel unhindered and could continue to operate a credit-card account etc.
I hope that something I have said above is some help in the debate.
Alex