Regular readers of this blog are likely aware of the wide variety of personal property that can be liquidated as a part of a Chapter 7 bankruptcy proceeding. While there are certain types of property that are commonly sold in bankruptcy auctions, there are times when the property available for purchase is more interesting than was is usually seen. This commonly happens in cases where once wealthy individuals are seeking relief via a bankruptcy filing.
While there are many reasons that a liquidation connected to a bankruptcy may occur, sometimes the auction is related to the failure of a business.
Many sports fans are likely interested in seeing what will be put on the auction block in the recently announced Chapter 7 bankruptcy filing of the company started by former professional baseball player, Curt Schilling. The bankruptcy is the result of defaulting on loans related to his video game company, called 38 Studios, which failed. He apparently personally guaranteed loans of up to $12 million from two different banks.
Schilling reportedly lost all of the money he had earned in his major league pitching career as a result of the failure of the business.
One of the items that was put up as collateral for one of the loans was the sock he was wearing in the Red Sox’s successful quest to win the 2004 World Series. Because his ankle was injured, the sock has blood on it. It is currently being displayed at the National Baseball Hall of Fame and Museum.
Other items that may also be sold are a hat that is rumored to have at some point been worn by Lou Gehrig along with memorabilia from World War II.
Source: Chicago Sun Times, “Bankrupt Curt Schilling might have to sell bloody sock,” Erica Niedowski, Oct. 4, 2012
- Our firm handles similar situations to the one discussed in this post. If you would like to learn more about our practice, please visit our Miami Chapter 7 page.