We have been following the news surrounding the bankruptcy of Arkansas football coach John L. Smith lately, providing you with updates on his filing.
USA Today reported last week that Smith arranged to have $600,000 of his $850,000 in pay deferred until after the end of the college football season. USA Today said that Smith’s arrangement is raising questions in the legal community, as it looks like it may be a tactic to prevent his creditors from getting his salary through his bankruptcy.
It will be interesting to see if the court takes issue with Smith’s salary arrangement. The arrangement could backfire on the coach—if you knowingly sign a contract before a bankruptcy that defers income until after the process commences, you could face fraud charges. In most cases, anticipating future finances is a part of the bankruptcy process.
News has also emerged that Smith has $40 million in liabilities, more than he originally listed in his filing, most which came from failed real estate investments. When Smith filed for Chapter 7 bankruptcy last month, he listed assets of between $1 million and $10 million, which many bankruptcy experts said was too vague, leaving them questioning his case.
If you are struggling financially, our Washington DC and Maryland bankruptcy lawyer can help you with a free consultation if you fill out the contact form on this website or call (202) 483-6070 to schedule an appointment. We can offer you the best solution for whatever your debt issues may be.
Law Firm of Kevin D. Judd– Maryland and Washington DC bankruptcy attorney