Former Duke basketball star, Christian Laettner, may soon find himself in bankruptcy court. His creditors have filed a petition with the court to pay his debt or file for an involuntary chapter 7 bankruptcy. According to a Wall Street Journal report, Laettner and his business partner may have outstanding loans to the tune of $30 million based on information revealed in earlier civil lawsuits brought by creditors.
Bankruptcy law protects creditors by permitting them to file an involuntary bankruptcy against an individual or business instead of the person or entity who owes the money. Creditors may be able to push a debtor into bankruptcy in order to get a hold of existing assets if the debtor is not paying debts as they come due and they believe the individual or business entity has assets to satisfy at least a portion of the debt.
With the exception of the very wealthy, involuntary bankruptcies are rarely filed against individuals who likely have few assets. However, individuals who are very wealthy or who have substantial assets and substantial debts can be targeted along with businesses, which are more typically found in an involuntary bankruptcy case.
Most consumers who are dealing with a difficult financial situation have few assets and too much debt. In these cases, bankruptcy law may provide protection against creditor harassment, home foreclosure, wage garnishment and more. Contact the Law Offices of Charles E. Covey for help if you are considering Chapter 7, Chapter 13 or business bankruptcy protection. Charles can assist you with a strategy to regain your finanacial footing.
Source: Wall Street Journal, “Creditors Try to Force Former Basketball Star Christian Laettner Into Bankruptcy”, by Katy Stech, July 3, 2016.