• Defunct Indoor Football Team File for Chapter 7 Bankruptcy

    The Oklahoma City’s Bricktown Brawlers filed for Chapter 7 bankruptcy liquidation on July 27, 2011. The filing comes a month after former Brawler player Jason White sued the team for breach of contract.

    The bankruptcy petition lists $55 in one bank account and 1 cent in another as assets with the team owing more than $300,000 to several investors, advertisers, and the IRS. The team listed its gross income for the 12 months prior to filing was $247,008.

    White’s breach of contract suit alleges that he was never paid any of the money owed to him under his ownership agreement with the now-defunct team. His lawsuit states that he had a 10 percent ownership in the team. His agreement gave him 10 percent of all gross revenues from advertising and sponsorships. He said he was also guaranteed 10 percent of the team’s net profit.

    White’s $10,000 claim is listed in the team’s bankruptcy paperwork, but is marked as being disputed. The bankruptcy filing puts White’s lawsuit on hold.

    Creditors using lawsuits to wring money out of debtors is a low but legal tactic. The downside for the debtor is having no money for the debt and receiving a judgment that can result in a wage garnishment. Bankruptcy is an excellent legal tool for a debtor to use in response to a lawsuit. If a debt situation has reached the point of lawsuits, don’t lose any more money than you have to and file bankruptcy instead.

    Benjamin Brand Services – Chicago bankruptcy attorney

  • Ex-Football Punting Star Auctions Super Bowl Rings as Part of Bankruptcy

    Former punter Ray Guy is auctioning the Super Bowl rings he won while playing for the Raider’s in the 1976, 1980 and 1983 National Football League seasons. The auction is part of a Chapter 13 bankruptcy filing.

    Guy spent his 14-year career solely with the Raiders in Los Angeles and Oakland. The native of Georgia filed for bankruptcy protection in Augusta Georgia and received authorization to sell his rings on May 23, 2011, according to court records.

    Nate D. Sanders Inc., the auction house handling the sales, estimates the rings are worth $75,000 to $90,000, CBSSports.com reported. As of August 2, 2011, the current bid for the lot is $6,727 according to the Nate D. Sanders website. The auction ends August 9 at 8 p.m. east coast time.

    The Internal Revenue Service is the first-priority lien holder in the bankruptcy. They must approve any sale below $63,127.88. Any proceeds above that number will be paid to the chapter 13 trustee, according to the order approving the auction.

    Bankruptcy can be used to settle a number of debts for good, even some I.R.S. back taxes under specific conditions. Don’t live your life under a cloud of debt when you have a perfectly legal avenue to stop the collection activity for good. A bankruptcy gives you the opportunity to start your financial life over and rebuild your credit. You can’t rebuild credit if you don’t have the money to pay your debts.

    Benjamin Brand Services – Chicago bankrutcy attorney