Fergie: 'I'm Not Going Bankrupt'

Sarah Ferguson, the Duchess of York, says she is doing everything she can to avoid declaring bankruptcy over business debts. The former wife of Prince Andrew said in a statement today that she has paid off all her personal debts. The statement was issued in a response to a front-page report in the Sunday Telegraph citing unidentified royal sources discussing the dire state of her finances.

“One key adviser believes the right thing is for the Duchess of York to go bankrupt," a senior royal source told the Telegraph. "He says it will be a week-long wonder, then everyone will say, 'It’s not altogether surprising’ and then they will forget about it.” Ferguson publicly admitted being in serious debt after she was secretly recorded by the News of the World offering to sell access to her ex-husband. (More Sarah Ferguson stories.)