Former Ravens Player, Jamal Lewis, Files for Bankruptcy

Pro-football players make a lot of money so it’s surprising how many end up filing for bankruptcy. The latest edition to the pro-ballers bankruptcy hall of fame is former Baltimore Ravens player Jamal Lewis, who filed for debt protection earlier this month.

Lewis filed for Chapter 11 bankruptcy in an Atlanta court, listing his debts at a little over $10.8 million. His assets, which include five homes in the Atlanta area, a fur coat, his Super Bowl ring and a least a few luxury vehicles, totaled about $14.5 million.

The NFL offers financial counseling services to incoming rookies but it doesn’t prevent former players from getting into trouble. The NFL estimates that 8 to 10 players have financial difficulties two years after they retire.

There are a number of reasons that professional athletes have money troubles. Some of them live extravagant lives and overextend their finances, but a bankruptcy attorney can draft a plan that will allow them to reduce their liabilities and start over.

Individuals most often benefit from a Chapter 7 or Chapter 13 debt-relief plans. The exact structure depends on how much they owe and whether they have regular income.

A bankruptcy lawyer will suggest a Chapter 7 liquidation if the indebted individual doesn’t have a steady income, but has a number of assets the can sell to pay off creditors. Under this filing many of the debts can be discharged.

If your bankruptcy attorney thinks Chapter 13 is your best option they will negotiate with creditors to develop a repayment plan. Regardless of what structure you decide on, a structured bankruptcy gives the debtor the chance to stop collection activities and return to a healthier financial state.