Michael Vick’s Bankruptcy

There have been headline news lately concerning the size of Michael Vick’s $100 million, 6-year contract with the Philadelphia Eagles.  Some people are outraged that a convicted felon can be afforded so much money, however Mr. Vick will most likely only see a small fraction of that amount.  The star quarterback filed for bankruptcy in 2008, and under the bankruptcy plan approved by in the Bankruptcy Court in Virginia, Vick must repay his creditors by liquidating his assets and including future pay.  Fast forward to today.  It is estimated that Vick is only guaranteed 12-13% of the new contract.  Of the $100 million, only 40% is guaranteed because of the injury prone nature of football.  Furthermore, after taxes and payments to the bankruptcy court ordered creditors, Vick will be left over with only a fraction of the headline making contract.

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Billionaire Files for Bankruptcy

Clients sometimes feel ashamed about considering filing for bankruptcy.  Despite the fact that circumstances out of their control occurred, there is still a lingering feeling of indignity.  Often it’s losing a job, or a heartless bank not affording the opportunity to refinance a mortgage, or an unexpected medical procedure — a simple surgery such as an appendectomy can costs tens of thousands of dollars.  Most filers aren’t billionaires who have squandered their fortune on needless spending.

Celebrity Chef Declares Bankruptcy

Although a vast majority of people that file for personal bankruptcy are regular people who have fallen on hard times, even well-known celebrities use bankruptcy as a legal tool to get control of their finances.  Recently, Chef Geoffrey Zakarian filed for bankruptcy in attempt to get rid of legal claims brought against him.  The Chopped celebrity chef is connected with the well known Water Club at the Borgata in Atlantic City, NJ.  Interestingly, he only listed $50,000 in assets, while having about $1 million in liabilities which includes the class action lawsuit filed against him by former restaurant workers who argue that he owes back and overtime pay.  The outcome of his filing will be known in the upcoming months.