This Pro Football Bankruptcy Case May Surprise You

As the head coach for the Las Vegas Raiders, Antonio Pierce earns several hundred thousand dollars per year. Even with the cost of living skyrocketing out of control, this sum is enough to afford quite a comfortable lifestyle in the desert. But life happens, investments go south, and even people that most would consider wealthy, or at least well-off, end up declaring bankruptcy. Here, his wife, Jocelyn Pierce, filed for chapter 11 bankruptcy to protect their marital assets as well as her separate property assets. Married couples often file joint bankruptcy petitions, but it isn’t a requirement for both spouses to declare bankruptcy. Because only Jocelyn is listed on the bankruptcy petition, the filing can protect both of their community property assets, but only Jocelyn’s separate property and not Antonio’s.

This bankruptcy filing comes after the Pierces defaulted on loans owed as part of Antonio’s investments in car dealerships. Despite owning a reported $9.26 million in shared assets, they also have $31.1 million in liabilities. Nissan Motor Acceptance Corporation has a judgment for $22.4 million, and Hyundai Capital America is owed $5.8 million. Both of these creditors had initiated the process of garnishing Antonio’s wages to collect the balance owed. A wage garnishment automatically deducts a standard portion (usually 25%) of the debtor’s paycheck to send to the creditor until their debt is repaid. This bankruptcy filing will keep these creditors from seizing any funds or assets from the Pierce family without the bankruptcy court’s approval first.

The automatic stay goes into effect for all bankruptcy cases, not just chapter 11. It can stop not just wage garnishments but bank account levies, asset repossessions, lawsuits, and more. Being able to put these types of issues on hold while addressing debt can be life-altering when executed correctly. Curious about how filing for chapter 7 or chapter 13 could help your financial situation in Henderson? Let an experienced member of our Henderson bankruptcy team review your situation and answer any questions you may have. To get started with your free consultation, call 702-899-3328.

Other Pro Sports Bankruptcy Cases

Professional athletes are known for earning high salaries during their careers, but also for potentially blowing that money and ending up broke. Several professional athletes have filed for bankruptcy throughout the years, with unique circumstances that led to their filings. Some of them include:

Mike Tyson: This boxing champion is known for his distinctive voice, face tattoos, and biting off Evander Holyfield’s ear during a match in 1997. He earned hundreds of millions of dollars throughout his career, but ended up filing for chapter 11 bankruptcy, like Jocelyn Pierce, in 2003. His exorbitant spending habits, combined with judgments from lawsuits piling up, put him in a position where it became necessary to declare bankruptcy.
Bill Romanowski: This football star played for various teams throughout his NFL career, including the Raiders. The impetus behind his joint filing with his wife was over $15 million in unpaid taxes. They filed their bankruptcy petition shortly before a hearing with the IRS on the matter. They were also accused of using funds from their nutrition company, Nutrition53, for luxury family outings. Like Pierce and Tyson, the Romanowskis filed their bankruptcy petition under chapter 11.
Allen Iverson: This NBA great’s career ended in 2010, and he was headed for bankruptcy court by 2012. Although he earned over $200 million playing basketball, he drained his bank accounts with high monthly expenses, treating his massive entourage, and trips to the strip club that cost more than most people’s cars. He even famously once forgot where his car was parked and simply went to the dealership to buy another one instead of tracking down his car. However, no one needs to worry about if Iverson will end up on the streets some day- his 2001 contract with Reebok included a $32 million trust, which he will gain access to in 2030.
Terrell Owens: This NFL player created a name for himself as a wide receiver for multiple teams. He earned approximately $80 million throughout his football career. However, Owens invested a great deal of savings in real estate shortly before the 2008 Recession. Due to having children with four women, his child support payments were $44,600 per month.

All of these wealthy and successful athletes filing for bankruptcy should show that if you are struggling with debt, you shouldn’t feel embarrassed about researching the bankruptcy process. If you want your bankruptcy information from an experienced Henderson bankruptcy lawyer, our firm offers free consultations by phone. Call 702-899-3328 to set up your free consultation with Henderson Bankruptcy Lawyers today.

Chapter 11 vs. Chapter 7

Jocelyn Pierce is a high net-worth individual, and therefore had the resources and incentive to file for chapter 11 bankruptcy. Chapter 11 bankruptcy is more costly than other forms of bankruptcy in filing fees, attorney’s fees, and expenses for other professionals who may need to be hired for the case, like financial advisors. Chapter 11 debtors aren’t bound by the same income limitations and asset exemptions as other bankruptcy debtors. In a chapter 11 bankruptcy case, the debtor’s primary creditors form a committee who has a great deal of say on what happens throughout the case. Creditors usually aren’t as involved in the more common forms of personal bankruptcy, chapter 7 and chapter 13.

Chapter 7 bankruptcy is the most-filed type of bankruptcy in Henderson and the rest of the United States. It has immense benefits, starting with the automatic stay, which provides comprehensive protection from creditors from the moment that the bankruptcy petition is filed. It can clear most types of unsecured debts, such as credit cards, medical bills, personal loans, repossession deficiency balances, and more. As compared to chapter 11, it is a shorter and simpler process, although each case comes with unique issues and can take 4-6 months to complete. There is no creditor committee in chapter 7 bankruptcy, although creditors can attend the 341 Meeting of Creditors if they have questions about the debtor’s case. Creditors also have 60 days after the 341 Meeting of Creditors to raise objections to their debts being discharged. Want to see if you qualify for chapter 7 bankruptcy in Henderson, and if your assets would be protected by Nevada’s bankruptcy exemptions? Schedule your free consultation with Henderson Bankruptcy Lawyers today- call 702-899-3328.

Need Debt Relief In Henderson, Nevada? Start Here With Your Free Consultation

Many bankruptcy debtors assume they can’t afford the expense of a bankruptcy attorney and file without their cases under self-representation. This can come with mixed results- in relatively simple situations, the debtor may be able to execute a chapter 7 filing with little to no legal assistance. But add in factors that can make filing bankruptcy more complicated, like joint filing, chapter 13, multiple sources of income, etc., and self-represented bankruptcy debtors are more prone to case delays and dismissals. Our Henderson bankruptcy team will do the heavy lifting in your case so you can focus on what’s the most important. We offer affordable payment options with post-filing payment plans starting at Zero Dollars Down. Get started today with your free consultation by calling 702-899-3328. Don’t hesitate to contact us today!