Michael Vick has a new contact but he filed for Chapter 11 Bankruptcy in 2009. People think that bankruptcy is an awful process. But let's take a closer look at what is going on so that we can break the stigma attached to bankruptcy.
Vick was going through tough times-losing millions and living on a court-approved budget. But he's really not losing money for nothing; he's paying what he owes. If you really look at what is going on here, you'll see that Vick really only had two choices: 1) let the creditors take all of his stuff or 2) file for bankruptcy and keep some of his stuff.
The court approved budget gives him enough money to pay the child and spousal support he owes as well as allowing him to keep his kids in private school. His car allowance of $472 per month is "a far cry" from what he's used to; however, it's more than enough to get him to get him to the football stadium. He can even afford to pay his mother a $30,000 salary. Obviously this is also "a far cry" from the $100,000 he was paying her, but $30,000 is not bad for doing no work. Last, Vick got to keep a house, a vehicle, his clothes and many of his personal items that have sentimental value to him.
Maybe you're wondering why Vick didn't file for Chapter 7 and erase his debts instead of paying them. However, not everyone can file for Chapter 7 as there are limitations. Please consult an attorney in order to learn what the pros, cons, and limitations are and what is the best option for you.