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NFL Quarterback Files for Bankruptcy, Requests Dismissal After Settling Out of Court with Creditor

By Johntex 2005 [GFDL (http://www.gnu.org/licenses/fdl.html), CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0/deed.en), or CC BY 2.5 (http://creativecommons.org/licenses/by/2.5/deed.en)], via Wikimedia CommonsVince Young, a National Football League quarterback, filed a petition for Chapter 11 bankruptcy in January 2014. Chapter 11 bankruptcy allows individuals or businesses to reorganize their debt payments. It bears some similarities to Chapter 13, although Chapter 13 is generally a better option for most individuals. Young reportedly filed the bankruptcy petition in order to stay efforts to collect a substantial judgment. He asked the bankruptcy court to dismiss the bankruptcy proceeding about two weeks after filing, stating that he had resolved the underlying collection dispute.

Young has been in the NFL since 2006. After playing for the University of Texas, he was drafted by the Tennessee Titans and played there for five seasons. He played for one season with the Philadelphia Eagles, and although he trained with the Buffalo Bills and the Green Bay Packers, he is not currently signed to a team. He reportedly made $34 million in his first six years, but ran into significant financial difficulties. During the 2011 NFL lockout, almost $2 million in loans were taken out in his name, which resulted in two lawsuits against him in New York filed by Pro Player Funding.

Pro Player Funding also filed an action in Houston, where Young resides, in 2012 to enforce any judgment obtained in the New York case. Young filed two appeals in Texas seeking to enjoin Pro Player Funding from collecting any judgment. An appellate court denied the injunction on December 17, 2013. Pro Player Funding obtained a turnover order from a Manhattan court the same day. On January 17, 2014, Young filed a Chapter 11 bankruptcy petition in Houston, which immediately stayed all collection action in Texas and New York. In re Young, No. 14-30400, petition (Bankr. S.D. Tex., Jan. 17, 2014).

The petition states that Young has between one and forty-nine creditors, assets valued between $500,001 and $1 million, and liabilities between $1,000,001 and $10 million. The court scheduled a creditor meeting for February 25, 2014. Young filed a motion to dismiss the case, however, on January 31. He cited 11 U.S.C. § 1112(b), which allows the court to dismiss a case for cause upon the request of a party in interest. Chapter 13 allows a debtor to request dismissal of a case “at any time,” and does not require the debtor to show cause. 11 U.S.C. § 1307. Dismissal of a Chapter 7 case is more complicated, and may only be done for cause. 11 U.S.C. § 707. Generally, dismissal of a bankruptcy case must be in the creditors’ best interest.

Young argued to the bankruptcy court that he had resolved the dispute with Pro Player Funding, and that dismissal would therefore be in the creditors’ best interest. The court signed an agreed order of dismissal on February 3. Young also requested dismissal of his remaining appeal of Pro Player Funding’s judgment, which the appellate court granted on February 25.

Residents of Los Angeles who have found themselves without sufficient income to service their debts have sought the assistance of bankruptcy attorney Devin Sawdayi since 1997. We help people create plans to pay debts on a manageable schedule in Chapter 13 cases, pay off debts by liquidating assets in Chapter 7 cases, and obtain a final discharge of some remaining debts. To schedule a free and confidential consultation to discuss your case, please contact us today online or at (310) 475-9399.

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Automatic Stay Does Not Prevent an Eviction Authorized in an Earlier Bankruptcy Case, Los Angeles Bankruptcy Lawyer Blawg, March 7, 2014

Effectiveness of Mandatory Pre-Bankruptcy Credit Counseling Remains Uncertain, Los Angeles Bankruptcy Lawyer Blawg, December 30, 2013

Photo credit: By Johntex 2005 [GFDL, CC BY-SA 3.0, or CC BY 2.5], via Wikimedia Commons.