In Texas and throughout the U.S., it is not unusual for people from a variety of walks of life to face financial challenges and confront the need to decide how to deal with it. One option that can be beneficial is Chapter 7 bankruptcy. The details of filing for Chapter 7 can sometimes be confusing as to whether it is the individual filing or a demand on the part of creditors that the filing be made. Regardless of the circumstances, a key to an effective Chapter 7 filing is to understand how the law works and whether it is the best possible option for the individual.
The former college basketball star, member of the first U.S. Olympic "dream team" and former National Basketball Association player Christian Laettner is dealing with his creditors filing an involuntary Chapter 7 bankruptcy petition against him. This stems from $14 million that Mr. Laettner is said to owe five creditors after court judgments were made against him. Mr. Laettner is involved in real estate and has been the subject of lawsuits for projects in several areas across the country.
The issue came to a head when a development in North Carolina in which Mr. Laettner was a partner was sold for $187 million. There was a surplus after the deal and it is believed that he might have profited from the proceeds. The goal on the part of Mr. Laettner, according to his representatives, is to settle the case so a Chapter 7 will not be necessary.
As this case shows, there are numerous factors that go into a Chapter 7 filing. It might be business related or it could have to do with personal debt. Financial challenges are universal and they can happen to someone who is prominent in the world of sports and then went into business, or it can involve a person who is simply trying to make ends meet. When there are questions about filing for Chapter 7, it is important that people understand how to get help and what options they have.
Source: bizjournals.com, "Creditors: We need Christian Laettner to pay us $14M or file for bankruptcy," Amanda Hoyle, July 5, 2016