Steinberg Files for Chapter 7
Image via Wikipedia
Image via Wikipedia
Leigh Steinberg has recently come forward in the news media to set the record strait about his financial affairs and personal life. Steinberg is known as the agent whom represented famous athletes and inspired the movie, Jerry McGuire.
In a self written article posted online in ThePostGame of Yahoo Sports, Steinberg wrote, “The public interest in my financial affairs and the inaccurate descriptions of my situation have led me to write this column: Today I have filed for Chapter 7, personal bankruptcy.”
A Chapter 7 is a type of bankruptcy that is the simplest and easiest type to complete. Commonly called liquidation, a Chapter 7 enables a person who has more debt than income to overcome some of the debts through discharge of their non-exempt debts.
You might think a man like Steinberg who has represented some of the most famous names in football would not even be eligible to file a Chapter 7, let alone go completely bankrupt.
In order to file a Chapter 7, you have to either make less than the median family income for similar size families in your area or pass the Means Test. Since most Chapter 7 applicants do not have any assets to liquidate, Steinberg’s lifestyle and bankruptcy become particularly interesting to those who work in the bankruptcy industry.
What is interesting is Steinberg’s explanation of why he is filing a Chapter 7. He stated in the article, “I delayed taking this step for a number of years because of my moral and legal obligation to people who advanced me funds or performed services in good faith. But the constant and aggressive collection efforts and press initiatives undertaken by creditors have harassed my family and prevented me from working to be able to pay these debts. Prospective clients have been pushed away after receiving notice of my debts. It doesn’t seem logical to prevent a person who owes you money from working in their chosen field by attempting to ruin his reputation, but that is what has happened. I have lived with this in recent years, and it is time to follow a more constructive path.”
Steinberg admits in the article to another cause for his financial demise, alcoholism. He stated that his addictive behavior contributed to his voluntarily placing his finances and business aside until he was able to overcome his problem.
Like you, famous people handle their problems similarly. Steinberg allowed an addiction to influence his financial decisions, and when he got into financial difficulty with his creditors, he is doing what you might do in his situation. He is filing for Chapter 7 bankruptcy protection, if for no other reason than to take advantage of the automatic stay of the bankruptcy court. The automatic stay will stop the aggressive collections and harassment from the collection agencies.
In addition, just like you, he most likely needs a fresh new start, “a more constructive path” he called it. He not only needs a fresh new start financially, but from his alcoholism as well.
If you need a fresh new start with your financial situation, contact a bankruptcy lawyer today.
