• Former University of Georgia Coach Jim Donnan Reaches Bankruptcy Settlement

    Jim Donnan, ex-ESPN analyst and former football coach at University of Georgia, has reached a settlement agreement in his ongoing bankruptcy case. The settlement has him returning millions of dollars he made from an alleged Ponzi scheme, according to court reports.

    Under the terms of the settlement, Donnan would pay $5.5 million to the creditors of West Virginia-based GLC Enterprises. A source familiar with the settlement told the press, “At the end of the day, his (Donnan’s) net worth is going to be pretty close to nothing.”

    Doonan’s attorneys said that their client was the first investor in GLC, a liquidation company that generated revenue through the purchase and resale of consumer products. He’s acknowledged investing $5.4 million of his own money in the company, which is also now in bankruptcy proceedings.

    Sources told the press that Donnan and the original operators of GLC, Greg and Linda Crabtree, are being investigated by the FBI and IRS for their roles in running an apparent Ponzi scheme.

    Court documents show investors sank about $82 million into GLC, but less than $12 million was spent on actual inventory.

    The court has not accepted the agreement offer as of yet. The agreement requires approval from the bankruptcy court, and any creditors in GLC’s bankruptcy case are entitled to raise objections.

    Bankruptcy is a valid legal option, no matter who you are, or what your social status is. As long as you qualify through the means tests, you can enter and work towards receiving a discharge. Bankruptcy offers the ability to get your financial life back on track with little disruption to your life.

    Benjamin Brand Services – Chicago bankruptcy lawyer

  • 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