If you’ve been reading my blog, you know that people from all walks of life have had to file bankruptcy, including some very famous ones. Michael Vick, of NFL and dog fighting fame, is just the latest celebrity to take advantage of the personal reorganization available through Chapter 13.
The part of the story that got me, though, was this quote:
He could have easily avoided most of this had he filed Chapter 7 and stiffed all of his creditors. But, to his credit, he has chosen to try to pay his debts.
Fact is, there’s no way Mr. Vick – with his multi-million dollar income – could have qualified for a Chapter 7 liquidation bankruptcy. He would have blown the means test. Chapter 13 was his only option.
If you are thinking about bankruptcy, you should talk to an attorney and learn more about the means test and whether or not you qualify for Chapter 7.
You can read the story here.