Bankruptcy

Michael Vick Filing Bankruptcy, Playing Ball & Moving Forward

By Meaghan Olson

If you can, please set aside the dog fighting, the jail time and the infuriating bad-boy behavior synonymous with his name?because Michael Vick?s got a new set of problems.

This fall, as the NFL reinstates him following a high profile, two-year hiatus during which Vick served time in federal prison, the former Atlanta Falcons quarterback finds himself $20 million in the hole.

On August 27, 2009, U.S. Bankruptcy Judge Frank J. Santoro approved Vick?s creditor repayment plan under one condition: that he retain a financial planner to ensure that he successfully emerges from his July 2008 Chapter 11 bankruptcy filing.

Vick has an estimated 100 creditors trying to collect from his past-due bills.

Vick ‘Happy’ With Filing Bankruptcy Decision

After the ruling, an elated Vick commented to reporters outside the courthouse in his home state of Virginia:

?I’m happy it’s over. I can move on with my life. I think my lawyers did a great job. I commend the judge. I commend the creditors’ committee, everybody. We finally got it all together. I’m just happy we can move forward.?

Following the court appearance, Vick and his fiancé were whisked away on a plane to Philadelphia for his debut in an Eagles? preseason game.

Once the highest-paid player in the NFL, Vick now receives a $1.625 million salary for the 2009 season.
This amount may not even cover his legal fees, much less a solid portion of what he owes to creditors.

Michael Vick to Liquidate Assets

The three-time Pro Bowl pick will be forced to liquidate around $9 million in assets, including houses, luxury SUVs, boats and future NFL earnings.

He is allowed to keep only one of several homes, a luxury SUV and other possessions of minimal worth.

Michael Vick Back on the Field ? Sort Of

NFL Commissioner Roger Goodell has permitted Vick to play in the final two preseason games of his new team, the Philadelphia Eagles, but not in the regular season.

In his announcement, much to the dismay of some, Goodell also contended that he would consider Vick for full reinstatement before Week 6 of the season.

Vick?s Debt to Be Resolved in Six Years?

Despite not having to pay creditors during his first year with the Eagles, Vick and his financial planner are hopeful that all of his debt will be paid off in six years.

The financial obligations of his Chapter 11 bankruptcy reorganization plan coupled with the 18 months he served in prison for operating a dog-fighting ring sustain Michael Vick?s reputation as an controversial figure in the sports world.

If nothing else, one thing in Michael Vick?s future is certain; for the undeniably talented athlete, winning games will not prove to be nearly as challenging as winning back an extremely contemptuous crowd.

Filing Bankruptcy Information

Are you tired of debt and curious as to how Vick may be resolving his old bills? Learn more about how filing bankruptcy works.

Full post as published by The Bankruptcy Blog on September 01, 2009 (boomark / email).