Miami readers of this blog may remember this past fall we wrote a post about the auction of former major league baseball player Curt Schilling’s sock that was bloodied while he pitched during a game of the 2004 World Series. The sock is being sold in conjunction with a Chapter 7 bankruptcy filing that was prompted by the failure of his video game company, 38 Studios. Thus far, online bidding has reached $60,000. By the time all is said and done, the final sale price could be as much as $100,000. This is good news for creditors of the video game company he owned as they will receive the proceeds.
There are a variety of reasons someone might find it necessary to seek financial relief via a Chapter 7 bankruptcy filing. While for many, it is due to medical bills, credit card debt or the loss of a job, as this case illustrates other financial situations can prompt it as well. An investment, even one that appears to be solid, can under certain circumstances, not live up to expectations. When this happens, the investor may find that he or she has lost whatever they had as collateral.
Whatever the reason behind the financial difficulty, it is important that debtors understand they likely have options regarding how best to proceed. In some cases those options include filing for bankruptcy under either Chapter 7 or Chapter 13. Though different processes, the idea behind each of the chapters is the same, to help the debtor deal with his or her debt so that they can move forward with their lives.
Source: The News Tribune, “Schilling’s bloody sock might sell for $100K,” Feb. 24, 2013
- 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.