University of Arkansas football coach John L. Smith recently came out to the media saying that he is planning to declare for bankruptcy during the upcoming season.
According to Yahoo, the Razorback’s coach, who was hired this offseason, got involved in several bad investments. Smith told Yahoo his “land investments began through acquaintances while (Smith) was the coach at Louisville from 1998-2002, starting with one subdivision development and evolving from there.” According to Yahoo, “As the real estate market began to slow several years ago, Smith said, he and his partners faced a difficult time maintaining their investments.”
”It just got big,” Smith said to Yahoo, who described his stake as being in the ”multi-millions.”
Smith’s case shows that financial difficulties can strike anyone, especially if they make poor investments in a declining real estate market. Should Smith file for bankruptcy, he, or anyone else facing mounting financial pressures, could eliminate the following burdens through a Chapter 7 or Chapter 13 bankruptcy:
- Collections: Through the automatic stay, bankruptcy ends collection attempts.
- Garnishments: Bankruptcy stops wage and bank account garnishments because collection efforts come to an end, allowing you to save your money.
- Repossession: When you file for Chapter 13 bankruptcy, you can work out a repayment plan allowing you to keep secured property.
- Lawsuits: Most lawsuits end after bankruptcy filings because the automatic stay prevents debt collectors from coming after you.
- Foreclosure: Under Chapter 13 bankruptcy, you can reorganize your debt and make payments toward your home. This allows you to save your house.
We applaud Smith’s openness about his financial difficulties. According to Yahoo, he was upfront during his job interview with Arkansas. ”Certainly, initially, I had concerns, but as he explained the situation to me, it clearly became a bad investment,” Arkansas Athletic Director Jeff Long told Yahoo. ”There was nothing inappropriate other than he had engaged in a risky financial deal.”
If your financial situation is a problem, contact our Washington DC and Maryland bankruptcy attorney now for a free consultation.