Michael Vick Moves in Court for Bankruptcy
The imprisoned quarterback soccer star Michael Vick has moved in the court for bankruptcy protection while serving time for federal dog fighting charges, which alleges him of being owed of between $10 million and $50 million to creditors.

He filed Chapter 11 papers in U.S. Bankruptcy Court in Newport News on Monday. As per the court documents, Vick owes a total of about $12.8 million. He is serving a 23-month prison sentence at the U.S. Penitentiary in Leavenworth, Kan, as verdict guilty last year to bankrolling a dogfighting ring. All the major sponsors including Nike, has suspended all contracts with him.

The suspended Atlanta Falcons quarterback promises his fans of his comeback. He assures them of rebuilding both career and life after his return from jail.

The debt also includes part of a signing bonus that the Falcons is planning to recover. The Falcons is trying to recover about $20 million in bonuses that Vick earned from 2004 to 2007after the dogfighting charges. But as per the verdict by a federal judge, Vick is entitled to keep all but $3.75 million of the money paid to him for playing football through the 2014 season. As per the filings, Vick’s other debts also include $4.5 million owed to Richmond-based Joel Enterprises Inc., and $550,0000 owed to Radtke Sports Inc. for violation of contract.

In May, a federal judge had ordered Vick to pay back around $2.5 million to a Canadian bank for a loan defaultment. The Royal Bank of Canada had sued Vick in September last year, arguing his guilty plea to a federal dogfighting charge. It prevented him from the loan repayment fearing it may affect his career. There was also another default judgment for $1.08 million entered in January against Michael Vick and one of his business partner in a lawsuit filed by Wachovia Bank over a financial loan for an Atlanta-area wine shop and restaurant.

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This entry was posted on Saturday, July 12th, 2008 at 12:01 pm and is filed under Football. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.