Because everyone’s living situation and financial resources are unique in some way, there is no “one size fits all” approach to fixing problems with debt. Besides debt settlement, there are several forms of bankruptcy that people may qualify for, including Chapter 7, Chapter 13 and Chapter 11 bankruptcy.
Each of these forms of bankruptcy have different advantages and disadvantages, and a bankruptcy attorney can help you decide which one will work best for you. In Michael Vick’s case, the New York Jets’ cornerback went through Chapter 11 bankruptcy due to total debts of $17.8 million.
Vick filed for bankruptcy back in 2008, when he was serving time in prison on dog-fighting charges. After getting released, he went on a “restrictive” budget of $300,000 a year -- a very comfortable salary for most people, but a small percentage of the $49 million he earned playing for the Jets and Philadelphia Eagles from 2010 through this season.
A news report indicates that Vick has repaid $15 million of the $17.8 million debt. The report says that Vick is in the process of selling a piece of real estate, which could help him further close the gap.
Interestingly, Vick could have qualified for Chapter 7 bankruptcy, which would have meant most of his debts would have been forgiven. He is quoted as saying he filed for Chapter 11 bankruptcy instead because he wanted to repay his debts in full.
People with prospects for high income in the future, as Vick had in 2010, may have this option. Others who qualify for Chapter 7 may wish to take advantage of their right to reduce their debt load.