Gregory Starkey, Attorney at Law


toll free

Let Me Help You Get Your Life Back on Track
Let Me Help You Get Your Life Back on Track

Football coach files for bankruptcy

Even with substantial and often excessive salaries, college football coaches, like many other citizens, are struggling with debt. Chapter 7 bankruptcy may be an option. The Alabama Roll Tide football team demolished the Arkansas team 52-0. This loss is not the only struggle for the Arkansas coach who has filed for Chapter 7 bankruptcy for a fresh financial start.

The coach is currently trying wipe away the overwhelming 40.7 million dollars in debt through Chapter 7 bankruptcy while still holding onto $1.2 million in retirement accounts and some personal property. The bankruptcy filing listed 26 unsecured creditors which include real estate investment debt and credit card debt. Once the Chapter 7 bankruptcy is complete, assuming there are no complications, the coach will be released from all of his debts.

Chapter 7 bankruptcy allows a person who is struggling with debt to get rid of or extinguish most of their debt in order to start with a fresh slate. There are also drawbacks of Chapter 7 bankruptcy. These drawbacks may include loss of property, including the home in which the creditor lives and a lowered credit score. Certain tests must be met in order to qualify for this chapter of bankruptcy. Certain types of debt cannot be extinguished through Chapter 7 bankruptcy. These types may include government funded student loans, certain forms of tax debt, child support and others.

Bankruptcy can be a necessary and extremely helpful option for those who are financially hurting. It can provide a clean slate and fresh start. However, there can also be sacrifices along with a bankruptcy depending upon the individual's situation.

Source: Shreveport Times, "Arkansas Coach John L. Smith's Debts hit $40M," Brent Schrotenboer, Oct. 3, 2012

No Comments

Leave a comment
Comment Information