Sporting News reports that former NFL star Clinton Portis has filed for Chapter 11 bankruptcy after running up more than $4.8 million in debts.
The news outlet says that the debt is the equivalent to 11 percent of what Portis earned during his nine-year career as a running back. According to court documents, the former All-Pro owes money to multiple creditors including a phone provider and an Atlantic City casino. He also owes back taxes, and his BMW was recently repossessed.
Strangely, Portis also owes money to his mother, Nischelle Turner, a correspondent for Entertainment Tonight and CNN, in addition to domestic support payments totaling $400,000 to four women. The Sporting News speculated that he may owe his mother money because a home he had built in Florida for her was going to enter into foreclosure proceedings recently, which the bankruptcy halted.
Court documents indicate that Portis currently receives about $3,500 per month in NFL disability payments, as well as $1,000 per month in supplemental income for game sideline reporting duties. People close to Portis have allegedly told media outlets that some of his issues with debt arose after he lost a large sum of money to a failed casino venture in Alabama.
Chapter 11 Bankruptcy for Individuals
As we reported in this August blog post, it is not uncommon for wealthy people to file for bankruptcy following failed business ventures. This can include business owners, athletes, investment bankers and other celebrities.
Many high-income earners choose to file for Chapter 11 bankruptcy because it allows them to eliminate substantial debts through repayment plans agreed to by all parties involved in a case. However, this form of bankruptcy has very specific income requirements, so it is not common. People who cannot meet Chapter 11 bankruptcy eligibility requirements may be able to file for Chapter 13 bankruptcy or Chapter 7 bankruptcy.
Like a Chapter 11 bankruptcy, a Chapter 13 filing also allows people to enter into repayment plans with creditors. Once this plan is over, most people restructured their lives financially and are free of debt, which is incredibly beneficial. If you have questions about which bankruptcy plan might be right for you, talk to an attorney.
Have a safe and wonderful New Year!