07 May Warren Sapp Bankruptcy
It seems that a few times a year a celebrity or athlete will declare a chapter 7 bankruptcy. In this case the most recent bankruptcy by a former athlete is by Warren Sapp or made around 60 million dollars during his playing career, and currently has an income of around $500,000.00 per year as a sports analyst. Some people may be wondering how he could qualify for a chapter 7 bankruptcy. The simple answer is he probably has filed a chapter 7 bankruptcy with more business related debt than consumer debt. If a persons business related debt exceeds their consumer debt, they will be eligible for a chapter 7 bankruptcy regardless of income.
This loophole was put in place to allow individuals who have started a business, accumulated debt from the business, to be able to file for bankruptcy protection to get a fresh start. Having the option to declare a personal bankruptcy after a failed business can be a big advantage when trying to start over. If you were not able to file for bankruptcy protection you may be left with debts that could not be repaid for the rest of your life. If you have a small business that failed give our office a call to see if bankruptcy is an option for you.