As regular readers of this blog are probably aware, there are many reasons that an individual decides to file for Chapter 7 bankruptcy in Miami or elsewhere in the country. While divorce and job loss are often cited as reasons for deciding to file, making the wrong investment can also lead to financial difficulties. John L. Smith, coach of the college football team the Razorbacks, is a good example of someone who is currently in this situation.
Court filings indicate that Smith is in debt $25.7 million. Though he owes money to a total of 26 unsecured creditors, the bulk of the debt, $20 million, is to one creditor in particular, a business called Terra Springs LLC. Other creditors include American Express, and two banks.
His income for the year is expected to be approximately $896,510.
According to the coach, the debt is due to real estate investments that though initially profitable, went south. This past summer the coach told reporters, “I’m a football coach, not a businessman.”
Smith stepped in to coach the Razorback’s after the previous coach, Bobby Petrino was fired when it was discovered that he had found an on-campus job for his young mistress. The new coach reportedly shared information regarding his finances with the school’s athletic director during the hiring process.
As is the case with all Chapter 7 bankruptcies, the coach’s property will be sold and the proceeds disbursed to his creditors. At the end of the bankruptcy any debt remaining after the payments will be erased.
Source: The Miami Herald, “Arkansas coach Smith bankruptcy shows $25.7M debt,” Chuck Bartels, Sept. 20, 2012
- The decision to file for bankruptcy should not be taken lightly. We provide counsel in these types of matters. If you would like to learn more about our practice, please visit our Chapter 7 bankruptcy page.