Warren Sapp, the former NFL star and current analyst on the NFL network, recently declared bankruptcy, reports Chicago Sun-Times. He apparently owes nearly $7 million to creditors, as well as child support and alimony. And his contract with the NFL network ends in the fall.
Of course, lots of attention will be paid to all the assets that Warren Sapp's bankruptcy reveal. One of these is a lion rug. Another are his 240 pairs of Air Jordan sneakers, worth thousands. His monthly salary is $115,881.
The bankruptcy Sapp filed is a Chapter 7.
The kind of bankruptcy that average individuals often seek out is called a Chapter 7 bankruptcy.
A Chapter 7 bankruptcy allows a financially strapped person to liquidate their assets and pay off their debtors. It can be a way of creating financial breathing space and the seven-year-waiting period afterwards can be managed with good guidance. The official forms may be purchased at legal stationary stores or can be downloaded from the web. The filing fee of $220 can be paid in installations.
Sometimes, people that do have a job tend to file a Chapter 13 bankruptcy, which allows you to set up a payment plan lasting a few years. It is unknown whether Warren Sapp considered that in his bankruptcy. Even if he did, the question would arise whether he would have been able to pay off the amount of money he owes.
Other considerations that come up in any bankruptcy is how much, if any, of the child support and alimony will be liquidated. Generally speaking it is very difficult to get child support discharged in a bankruptcy.
For more on these subjects coming to light from Warren Sapp's bankruptcy you should speak to a local attorney.
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