The glitz and glamour of the National Football League (NFL) often mask a harsh reality. Behind the scenes, a significant percentage of NFL players face financial struggles post-retirement. Despite the perception of high NFL salaries, many players find themselves overwhelmed by debt after their careers end; some of the factors contributing to this financial instability include poor financial management and the relatively short lifespan of a NFL career as a Chapter 7 bankruptcy lawyer can further explain:
The financial struggles of NFL players post-retirement are more common than one might think. Despite the fame and fortune associated with the league, many players find themselves in financial distress once their playing days are over. A 2009 study by Sports Illustrated found that 78% of former NFL players face financial hardship within two years of retirement. This is a staggering statistic, considering the high salaries these athletes earn during their careers.
Our friends at the Law Offices of Gerald Bauer Jr., Esq. can assure you that financial struggles are not just limited to former NFL players; that for individuals and families facing financial despair the filing of either Chapter 7 or Chapter 13 bankruptcy can provide significant relief. Filing for bankruptcy under the U.S. Bankruptcy Code is a business decision that one must make devoid of any personal feelings. It’s a decision that one doesn’t make at the first sign of financial strain, rather, it’s typically found at the end of a tumultuous, stress-filled, anxiety-ridden multiple years.
Chapter 7 bankruptcy, also known as the “liquidation bankruptcy,” is the most commonly filed chapter under the U.S. Bankruptcy Code. An overwhelming majority of debtors in a Chapter 7 do not have to turn over their property to the Chapter 7 trustee as most/if not all of their property is protected by applicable bankruptcy exemptions. The location of one’s domicile determines the available exemptions and whether you may claim
Federal and/or State exemptions. The biggest gatekeeper preventing a good majority of debtors from filing under Chapter 7 is the inability to pass the “means test.” Individuals and/or families whose household income is above their respective State limit and whose deductions are not enough to qualify them then Chapter 13 is their only bankruptcy alternative.
Chapter 13 bankruptcy offers individuals an alternative for those who do not otherwise qualify for a Chapter 7. Chapter 13 offers debtors a structured repayment plan where they pay anywhere from 100% to 10% of the total Chapter 13 plan balance. Debtors who have too much unprotected equity in property they own that they would otherwise lose in a Chapter 7 and homeowners facing foreclosure are also ideal candidates for filing for chapter 13 bankruptcy.
There are many different options for bankruptcy, and trying to figure out the best one for your situation can seem overwhelming if you are trying to do it alone. If you are experiencing financial difficulty, reach out to a local experienced bankruptcy attorney to better understand your options so you can receive the help you deserve.
