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Jose Canseco files for Chapter 7 bankruptcy

Who in California doesn't remember Jose Canseco? The former Major League Baseball player was a star in the late 1980s, winning the 1986 Rookie of the Year award in the American League and the overall league Most Valuable Player award in 1988 -- all while playing for the Oakland A's.

But the 48-year-old has had a rough transition to the non-baseball player lifestyle, with all sorts of well-documented oddities occurring around him, but most notably through his admission that he used performance-enhancing drugs during his playing days. It appears the tough times will continue for Canseco, as he recently filed for Chapter 7 bankruptcy protection.

According to the Chapter 7 filing, Canseco listed approximately $1.7 million in liabilities, with only about $21,000 in assets. Of the $1.7 million he reportedly owes, about $500,000 is owed to the Internal Revenue Service.

Chapter 7 bankruptcy, also known as "liquidation" bankruptcy, gives the filer a chance to eliminate an unmanageable debt burden. Filers list their non-exempt assets, which are then sold to satisfy debts to the extent that doing so is possible. Any remaining unsatisfied debt is discharged.

Many professional sports athletes have trouble adjusting after their playing days are over, as can be seen in the many headlines involving former athletes getting arrested, suffering medical problems and, in cases like Canseco's, filing for bankruptcy.

Some people probably scratch their heads when they hear about someone who made millions of dollars eventually having to file for bankruptcy, but career transitions can be tough for anyone, especially in today's economy. There are thousands of people out there who are feeling the financial crunch of heavy debt in their households, and many people, like Canseco, might benefit from considering every option for discharging that debt.

Source: Yahoo! Sports, "Jose Canseco files Chapter 7 bankruptcy in Nevada," Aug. 1, 2012

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