New York pro football fans might be surprised to learn that former NFL running back Clinton Portis has filed for bankruptcy. The 34-year-old played for the Denver Broncos and the Washington Redskins and earned around $43 million over nine seasons. According to his federal bankruptcy filing, Portis owes almost $5 million to various creditors.
Figuring out when to file for bankruptcy
Many people in New York may be struggling with debt and unaware of their options. Bankruptcy is the right choice for some while others might have various possible solutions that they can pursue first. When trying to figure out a way to pay off debts, people should first evaluate their budgets.
The interplay of bankruptcy and divorce
When New York residents are having trouble paying their debts, it may be worthwhile to file for bankruptcy. However, for those who are also thinking about a divorce, it may be difficult to decide whether to file for bankruptcy while still married or after the split is finalized. The answer to that question depends largely on the facts of a given case.
Meeting terms of Chapter 13 crucial to bankruptcy protections
New York consumers who are considering filing for Chapter 13 bankruptcy or who are already in the process of one needs to understand the potential consequences of failing to meet statutory requirements. Under Chapter 13, a court approves a new payment plan for the debtor. If the debtor fails to keep up to date with the new payments or misses other obligations, the bankruptcy trustee or a creditor could request that the Chapter 13 status be converted to a Chapter 7 liquidation. The potential to have bankruptcy protection dismissed entirely also remains possible.
What people should know about Chapter 7 bankruptcy
New Yorkers who are considering the bankruptcy process as a way to get out from under debt should be aware of the various pitfalls of Chapter 7 bankruptcy. Millions of people file for bankruptcy each year, whether for their individual debt or small businesses. Sole proprietors are personally liable for the debts their businesses accrue, and thus filing for bankruptcy is sometimes a consideration.
