We have all seen the stories about celebrities and professional athletes who, at one time in their career, made millions of dollars - but then they end up filing for bankruptcy. Most of the time this just goes to show that all types of people can end up facing financial challenges for a wide variety of reasons. It is rare, however, that we ever hear about people who rebound from these types of situations and get their financial issues under control. NFL quarterback Michael Vick is one of those success stories.
Many of our Escondido readers probably remember all of the trouble that Vick got into several years ago. First he was arrested for his role in a dogfighting operation, which led to a swift end to his NFL playing career at the time. Then he was convicted and sentenced to serve a prison term in a federal penitentiary. In the midst of all of these legal problems, Vick had to file for personal bankruptcy.
According to one report, Vick considered filing for Chapter 7 bankruptcy, which would have discharged many of the debts he owed, but he decided to go a different route in order to repay what he owed. In a somewhat unusual move for an individual, Vick filed under Chapter 11 of the bankruptcy code. Now, years after he rearranged his finances, and having gotten back to playing in the NFL again, first for the Philadelphia Eagles and now the New York Jets, reports indicate that Vick has nearly repaid all of his debts. He has repaid over $15 million that was owed at the time he filed for bankruptcy.
Some people are wary of bankruptcy and what it could mean for their future. But, as Vick's success story demonstrates, bankruptcy is a tool for consumers to get their financial situation under control.
Source: espn.go.com, "Michael Vick pays down his debt," Darren Rovell, Dec. 17, 2014