We have discussed the financial issues surrounding former Major League Baseball All-Star pitcher Curt Schilling several times in our blog.
Schilling’s 38 Studios, a video game company based in Providence, filed for Chapter 7 bankruptcy in June. 38 Studios reportedly got into trouble when some of the games it developed had delayed release dates, forcing the company to miss loan payments. In May, the company laid off 400 employees, reportedly having $21.7 million in assets and $150.7 million in liabilities.
Last week, news emerged that Schilling may have to auction off the famous blood-stained sock he wore during the Boston Red Sox’s run to the 2004 World Series championship. According to the Chicago Sun Times, Schilling listed the sock as collateral to the Bank Rhode Island in a filing with the Massachusetts Secretary of State’s office.
The Sun Times reported that Schilling also “listed a baseball hat believed to have been worn by New York Yankees great Lou Gehrig and his collection of World War II memorabilia.” Schilling also recently put his 20-room home on 26 acres in Medfield, Mass., on the market for $3.45 million.
Schilling told the Associated Press that he “invested as much as $50 million in 38 Studios and lost all his baseball earnings.” Although Schilling did not file for bankruptcy, his assets are being used to secure the loans he personally guaranteed for 38 Studios.
While it is unfortunate that Schilling may have to auction off his assets, this is a common practice during a Chapter 7 bankruptcy. Although Schilling may lose some personal belongings, the company’s creditors will likely have no way of collecting on the business’ debts outside of the auction, as 38 Studios is no longer doing business.
Individuals filing Chapter 7 bankruptcy may worry about not being able to keep their assets; however, you should be aware that most people who file for bankruptcy are allowed to keep their belongings.
If you are struggling financially, our Maryland and Washington DC 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– Washington DC and Maryland bankruptcy attorney