Michael Vick files for bankruptcy

Bloomburg News
InRich.com
Published: July 8, 2008

Michael Vick, the former Atlanta Falcons quarterback serving a 23-month sentence for conspiring to run a dogfighting operation, filed for bankruptcy.

Vick, 28, sought bankruptcy protection yesterday in U.S. Bankruptcy Court in Newport News after failing to “work out consensual resolutions with each of his creditors,” according to court papers.

Several creditors including Joel Enterprises Inc. are obtaining judgments against Vick, who is serving his sentence at the U.S. Penitentiary at Leavenworth, Kan., and have “commenced collection and execution activities.”

Vick listed assets of less than $50 million and debt of $10 million to $50 million in Chapter 11 documents. The seven largest creditors without collateral backing their claims are owed a total of $12.8 million, court papers show.

The three biggest unsecured creditors are: Joel Enterprises Inc., owed $4.5 million for breach of contract; Atlanta Falcons, owed $3.75 million for “pro-rated signing bonus” and Royal Bank of Canada, owed $2.5 million for a loan.

Vick, a former Virginia Tech star, a three-time Pro Bowl choice with the Atlanta Falcons and the No. 1 pick in the NFL’s 2001 college draft, has been indefinitely suspended by the league.

-- Bloomberg News