Archive for July, 2008
Michael Vick, following in the footsteps of other superstars, has finally done the predictable and filed for Chapter 11 bankruptcy. As you may recall, he had moved from Georgia to bankruptcy friendly Florida before going to prison in order to shield his assets from creditors.
Now he is hoping that he can get out of paying somewhere between $10 – $50 million dollars, including over $3 million which would have gone to his former team the Falcons and their remaining fan base(Another finger to the fans of Atlanta from Vick).
In addition to raking the Falcons over the coals one more time, Vick is also defaulting on some of his sponsors and business partners.
Under this bankruptcy arrangement, Michael Vick will likely be able to keep most of the funds he’s managed to sock away in ‘retirement’ funds. He will also be likely to keep his brand new Miami condo, which may have cost over $2 million.
Just like he did on the football field, Michael Vick is ducking, dodging and running away from the consequences of a legal defensive line that is supposed to be there to defend the public of the United States from crooks and cheats, but Vick has found the same obvious opening that so many of the very rich are able to afford when they file for bankruptcy, Florida.
Michael Vick files for bankruptcy protection
By MICHAEL FELBERBAUM – 1 hour ago
RICHMOND, Va. (AP) — Imprisoned quarterback Michael Vick filed for bankruptcy protection while serving time for federal dogfighting charges, saying he owes between $10 million and $50 million to creditors.
Vick filed Chapter 11 papers in U.S. Bankruptcy Court in Newport News on Monday. The seven largest creditors listed in the court papers are owed a total of about $12.8 million.
The suspended Atlanta Falcons quarterback hopes he “can, after the conclusion of the bankruptcy case, rebuild his life on a personal and spiritual level, resurrect his image as a public figure, and resolve matters with the NFL such that he can resume his career,” according to the filings.
Vick is serving a 23-month prison sentence at the U.S. Penitentiary in Leavenworth, Kan., after pleading guilty last year to bankrolling a dogfighting ring. He was subsequently suspended indefinitely without pay and lost all his major sponsors, including Nike. He also faces state charges related to dogfighting.
The debt includes part of a signing bonus that the Falcons are seeking to recover.
After the plea on dogfighting charges, the Falcons tried to recover about $20 million in bonuses Vick earned from 2004 to 2007. But a federal judge held that Vick is entitled to keep all but $3.75 million of the money paid to him for playing football through the 2014 season.
According to the filings, Vick’s other debts include $4.5 million owed to Richmond-based Joel Enterprises Inc., and $550,0000 owed to Radtke Sports Inc. for breach of contract.
In May, a federal judge ordered Vick to repay about $2.5 million to a Canadian bank for defaulting on a loan. The Royal Bank of Canada had sued Vick in September, arguing his guilty plea to a federal dogfighting charge — and the resulting impact on his career — prevented him from repaying the loan.
A default judgment for $1.08 million also was entered in January against Vick and a business partner in a lawsuit brought by Wachovia Bank over a loan for an Atlanta-area wine shop and restaurant.