Recently, three well-known athletes–Curt Schilling, Warren Sapp and Jose Canseco–all filed for bankruptcy. In Schilling’s case, he made some bad business investments in a video-game design company. In Sapp’s case, he racked up huge debt, including hundreds of thousands of dollars in back child support payments. And in Canseco’s case, the former star went from having millions of dollars to only having $21,000 in assets when he went to file his recent Chapter 7 Bankruptcy.
These cases all made headlines because people are shocked at how former millionaires can suddenly go so broke that they have to file for bankruptcy. But the truth is that bad financial decisions can plague millionaire athletes just as they can a middle-class American. While most of us don’t have $6,500 worth of rare Air Jordan shoes to auction off to pay our creditors (like Warren Sapp), bad financial decisions, losing a job, having unexpected emergency medical bills, or losing a home in foreclosure can force even normal Americans into bankruptcy.
While we always encourage our clients to first try to work out a viable solution to their credit problems, if there is simply no alternative, bankruptcy can be a last-resort for many people.
If you or someone you know is drowning in debt with no hope of recovery, give us a call and we can help answer your questions about bankruptcy and whether you could qualify for bankruptcy protection. Our phone number is 214-236-2712.