NHL player and Columbus Blue Jackets defenseman Jack Johnson, who filed for Chapter 11 bankruptcy last year, is attempting to covert his case to a Chapter 7 filing. 
Johnson, 27, allegedly had to file for bankruptcy due to risky decisions made by his financial handlers, who included his parents. At the time of his filing, Johnson had earned more than $18 million during his nine-year career. The hockey player’s parents allegedly persuaded him to take out a string of high interest loans that he defaulted on—his mother also reportedly took out at least $15 million in her son’s name against his future earnings.
According to the sports blog Deadspin, Johnson is attempting to covert his case to a Chapter 7 filing because it would allow him to liquidate his assets instead of reorganizing financially via a Chapter 11 repayment plan.
His creditors are opposed to the conversion because they say it will set “a roadmap for irresponsible or unethical multi-millionaires,” according to Deadspin. As part of his current plan, Johnson’s finances, including credit card and debit statements, are monitored monthly.
Johnson reportedly has a hearing later this fall to review the motion he filed to convert his case. His parents have allegedly also filed a motion in an attempt not to attend the hearing or be subjected to questioning.
Which Bankruptcy Plan is Best for Me?
This is a very interesting case. In order to qualify for Chapter 7 bankruptcy, a debtor must be able to meet certain income requirements under the Means Test. Those who do not qualify may be eligible to file for Chapter 13 or Chapter 11 bankruptcy.
Johnson is wise in trying to take advantage of the benefits of Chapter 7 bankruptcy. Through this type of filing, you can discharge unsecured debts like credit card debt and medical bills. Although Johnson may be looking to liquidate assets, in Texas, laws allow most people to keep their houses and cars. For more information about this, visit our Bankruptcy FAQ page.
If your finances are overwhelming and you are struggling to pay off debt, talk to our Lewisville bankruptcy attorneys. Our law firm can determine a bankruptcy plan that may work best for you. You can reach us by calling (972) 315-6222 or by using the case review form located on this page.
Shuster Law Firm PLLC – Lewisville Bankruptcy Attorneys
Source: http://deadspin.com/jack-johnson-is-fighting-for-his-contract-in-bankruptcy-1727798293
