Bankruptcy

Michael Vick Files for Bankruptcy

Not that it is any surprise, but disgraced Falcon's quarterback Michael Vick has filed for bankruptcy.?? The case was filed as a Chapter 11 reorganization in the Eastern District of Virginia.?? Chapter 13 was not available to Vick because his debts far exceed the debt limits imposed by the Bankruptcy Code on Chapter 13 cases.

Under a Chapter 11, Vick will propose a repayment plan for creditors.?? Generally, plans in Chapter 11 cases are filed within the first year after filing.?? Here, I don't see that Michael Vick can possibly know about his future earnings.?? If he gets past state charges, if the NFL reinstates him and if a team is willing to pay him for his services, then a Chapter 11 would be feasible.

If there was ever any question that a debt crisis can happen to anyone, Michael's story shows that bad choices and bad luck can land anyone in bankruptcy court.???? Until the money starts rolling again, however, Michael Vick has just created on-going employment for a lot of lawyers on both the debtor and creditor side.

Thanks to my friend Scott Riddle for reporting the Vick filing on his excellent Georgia Bankruptcy blog.

Full post as published by The BK Blawg on September 24, 2008 (boomark / email).