After a long history of franchise failure, Curt Schilling will always be remembered for leading the Boston Red Sox to two World Series Championships. With his playing days over, however, the former All-Star pitcher has gotten into a business venture that has proven extremely costly.
Earlier this month, 38 Studios, the video game company Schilling owns, filed for Chapter 7 bankruptcy with plans of liquidating. The filing comes less than two years after the company received a $75 million loan guarantee from the state of Rhode Island to move its headquarters to the state and create jobs. 38 Studios reportedly got into trouble because some of the games they developed delayed their release dates, forcing them to miss loan payments. In May, the studio laid off most of its 400 employees, reportedly having $21.7 million in assets and $150.7 million in liabilities.
Schilling’s case shows how bankruptcy can happen to anyone, including those who own businesses after making millions of dollars during a professional career.
An individual who has unsecured debt may be facing the same difficult decisions as Schilling. You might get into financial trouble by missing payments and/or having issues come up in your life that disrupts work and income. Chapter 7 bankruptcy allows you to discharge unsecured debt, like credit card debt or medical bills, which often go unpaid when financial issues arise.
Individuals filing Chapter 7 bankruptcy may worry about not being able to keep their assets; however, you should be aware that states allow exemptions for your home, your car, personal property and retirement assets. That’s why it’s important to talk to an attorney about a bankruptcy plan that best fits your needs.
If your financial situation is a problem, contact our office now for a free consultation, whatever your debt situation might be.