Professional athletes can make a large amount of money in short amount of time. For various reasons, even though athletes can make a large amount of money, the money expenditures can outgrow the influx of money. When an Alabama individual's debt significantly outweighs their earnings or earning potential, bankruptcy may provide an option for bankruptcy relief. One form of debt relief is the liquidation process of Chapter 7 bankruptcy.
The most recent professional athlete to file bankruptcy is former Major League Baseball player Jose Canseco. Jose Canseco has arguably gained celebrity status as a result of his professional baseball career. In 1986, he was the American League Rookie of the year for Major League Baseball and in 1988 he was the American League Most Valuable Player. During his professional baseball career he primarily played for the professional baseball team the Oakland Athletics. Although Jose Canseco has filed his Chapter 7 bankruptcy petition outside of Alabama, the federal laws of bankruptcy are similar through the United States.
Earlier this week, the former baseball play officially filed his Chapter 7 bankruptcy filing, in which he is requesting asset liquidation. Listed in the bankruptcy petition, the 47 year old former professional baseball player claims assets that are valued at less than $21,000. The bankruptcy petition also claims liabilities that amount to almost $1.7 million. Included in his liabilities includes an overdue amount of $500,000 that is owed to the Internal Revenue Service. In filing the Chapter 7 bankruptcy, the former baseball player is seeking to liquidate his assets in an effort to discharge his existing debt.
Source: The Japan Times, "Canseco files for bankruptcy," Aug. 3, 2012