In our last post we briefly talked about Chapter 11 bankruptcy, focusing on how many businesses will file for this type of bankruptcy with the hopes of reorganizing debts while still remaining in operation. However, businesses are not the only types to file for Chapter 11 bankruptcy, as individuals do too.
Most recently former NFL running back Jamal Lewis made the headlines when it was announced that he is attempting to reorganize his debts through a Chapter 11 bankruptcy. According to his filing, while he does owe millions to creditors, he still has about $4 million more in assets than liabilities.
Back in his playing days Lewis was an impressive running back for the Ravens and Browns, helping the Ravens win the Super Bowl early in his career. In his seasons, Lewis rushed for 10,607 yards.
However, even though among many he is considered a great in the sport of football, it appears that he is in some need of help when it comes to his finances.
At this point, he reportedly carries debts of $10.56 million, but maintains assets of $14.45 million. The disparity is significant, as some speculate that creditors will be expecting him to sell off many of his assets in order to receive cash, which can then go to those he owes.
When looking at those assets, Lewis supposedly earns $420,000 a year, owns five homes, a number of cars and half of the shares in a water park.
What all of this proves is that even those with significant assets can still also have significant debts. The hope for Lewis is that this bankruptcy will allow him to get his finances back in order.
Source: NBC, “Report: Jamal Lewis declares bankruptcy,” Mike Florio, May 27, 2012