A national news source has recently reported that ex-NFL running back Clinton Portis has filed for Chapter 7 bankruptcy in order to address $5 million in mostly unsecured debt that he has accumulated since ending his professional football career. The story demonstrates a good example of how Chapter 7 bankruptcy may be used to permanently resolve many types of debt, including unpaid taxes to the IRS or state governments, regardless of the previous income of the filer.
A Chapter 7 bankruptcy is also known as a liquidation bankruptcy, and it is an action that can be filed in a U.S. Bankruptcy Court by debtors who are unable to pay their debts and have little or no assets that could repay the debts if they are forcibly sold.
In a Chapter 7 bankruptcy, all of the debtor’s non-exempt property becomes accessible to creditors to be sold or divided, and after a certain time period, the debts are discharged, and creditors are no longer able to collect them. With some additional restrictions, delinquent taxes owed to the IRS that are more than three years may be included in a Chapter 7 bankruptcy for debtors who have filed tax returns on time and follow the correct procedures. The three years runs from the date the tax return was due to be filed, including extensions. It is essential for debtors considering bankruptcy to plan in advance and consult with a qualified bankruptcy attorney well before their anticipated filing to have the greatest chance of discharging unpaid tax debt.
Former NFL Star Running Back Owed Over $450,000 in Unpaid Taxes
According to the news report discussing Mr. Portis’ recent filing, he is asking the court to discharge over $450,000 in unpaid taxes from the years 2006 and 2010. Based on the report, it appears that the income that resulted in this six-figure tax bill is long gone, and without the ability to file for a Chapter 7 bankruptcy, Mr. Portis could be forced to endure the tax burden from his $43 million pro football career long after he’s lost the ability to earn that type of income. With the help of a skilled bankruptcy attorney and court approval, Mr. Portis should be able to get his finances back into a manageable situation and put his unpaid taxes and other debts behind him.
Are You Considering Bankruptcy?
If you are deep in debt and looking into debt relief options, the Louisville and Southern Indiana bankruptcy attorneys at the Schwartz Bankruptcy Law Center can help you decide which course of action is the best for you and get you started down the path to financial independence as quickly as possible. Extremely successful professionals are often unexpectedly placed in a situation where they need bankruptcy protection, and a bankruptcy often represents the beginning of a financial success story, not the result of a failure as many debt relief agencies and loan consolidators would like people to believe. Our attorneys will answer your questions about which kinds of debt can be discharged in a bankruptcy, as well as the exemptions that can be used to keep as much of your property as possible throughout the process. Contact an experienced debt relief attorney today. At the Schwartz Bankruptcy Law Center, we help clients across the country get their finances back on the right track. Call 866-366-3328 to schedule a risk-free consultation or contact us through our website.
More Blog Posts:
Appellate Panel Sides with Debtor, Clarifies Credit Counseling Requirement in Chapter 13 Bankruptcies, Kentucky Bankruptcy Lawyers Blog, published December 11, 2015.
Court Lifts Automatic Stay in Chapter 7 Bankruptcy Proceeding Based Upon Accusations of Fraud, Kentucky Bankruptcy Lawyers Blog, published December 26, 2015.