According to a December 17 New York Post article, Vick filed Chapter 11 bankruptcy for individuals in July 2008, before being sent to prison for his involvement in a dog-fighting ring. From 2010 to 2014, Vick has been on a restrictive budget of $300,000 per year in order to make payments to his creditors — during this period, he earned more than $49 million.
Currently, Vick and his Chapter 11 bankruptcy attorneys say he has paid off more than $15 million — about 85% — of his $17.8 million in debts, the New York Post reports.
“What Michael did was the exception, not the rule,” Joseph Luzinski, senior vice president at management consultancy firm Development Specialists Inc. and the liquidating trustee in Vick’s case, said.
Vick had told ESPN that while he could have chosen the Chapter 7 bankruptcy timeline to eschew his debts, he opted for Chapter 11 bankruptcy because he felt a personal responsibility to pay people back for his debts.
“I didn’t want to stiff people who never stiffed me,” Vick said.
While Chapter 11 bankruptcy protection is usually reserved for corporations or partnerships involving more than one person, Vick’s unique situation as a professional athlete in the NFL allowed him to seek a Chapter 11 bankruptcy.
Since his 2009 release from prison, Vick has played for both the Philadelphia Eagles and the Jets, NBC Sports reports.
What do you think about Michael Vick nearly being done with paying back his creditors? Do you have any other questions or comments on filing bankruptcy? Let us know by leaving a comment below.
