Former NFL player’s bankruptcy is discharged
Florida fans of former NFL player Bob Whitfield may be interested to learn that four and a half years after filing for bankruptcy, he has cleared his debts. On July 1, 2011, he filed for Chapter 13 bankruptcy. At the time, he claimed his only income was just under $3,500 in disability while his expenses were more than $7,000 monthly.
His debts included more than $400,000 in a home mortgage and over $140,000 in traffic tickets, overdue bills and other miscellaneous items. He also had a tax bill that was just under $50,000 and was in a dispute with his ex-wife, former reality show star Sheree Whitfield, over more than $38,000 in child support. However, he also had more than $1 million in assets at the time including real estate, a Rolex watch and a home entertainment system. He also had an NFL profit share and a retirement account.
Partway through the process, his bankruptcy was changed to a Chapter 7. He says that everyone has now been paid.
Chapter 13 bankruptcy involves a plan to repay creditors over a period of from three to five years. People file for Chapter 13 when they do not qualify for Chapter 7 due to their income and they want to keep some assets. It is unclear what details in Whitfield’s case led to his conversion to a Chapter 7 bankruptcy or how that affected his repayment. While a bankruptcy does damage a person’s credit for a time, so do debts. Bankruptcy provides debt relief, and as soon as a bankruptcy is discharged, people can begin rebuilding their credit.
Source: Radar Online, “Sheree’s ex Bob Whitfield pays off more than $600K in bankruptcy case,” Lindsey DiMattina, March 16, 2016