“…Sometimes you’ve got to do what you’ve got to do,” says a former NFL player. What is he talking about? He is referring to filing for Chapter 13 bankruptcy. Yes, financial hardships strikes all types of people, even Super Bowl winners

According to reports, the former NFL Raider has sacrificed what many of us would think of as invaluable assets. To try to pay back some of his debts, Ray Guy auctioned off not one, not two but three Super Bowl rings that he earned with his athletic prowess in 1976, 1980 and 1983.

But why does Guy have to pay back creditors if he has filed for bankruptcy? Shouldn’t he be free and clear of his debts and be able to move on and start over? While all bankruptcies are intended to help someone or businesses get out of the debilitating state of having excessive debt, not all bankruptcies are the same.

For example, Chapter 13 is different than other types of bankruptcies. Chapter 13 is a debt repayment plan. Rather than having all of your debts forgiven, a three- or five-year plan will be arranged between you and your creditors determining how secured debts will be paid in full. You will also come to a payment agreement regarding unsecured debt (such as credit card debt) and what percentage of those debts you can and, therefore, will pay during the plan repayment period.

Chapter 13 bankruptcy can help a person save their home from foreclosure. Another benefit of filing is that creditors are not allowed to contact and harass you after you have filed for the protection. Certainly, filing for bankruptcy can be a lifesaver for many. Just as the former NFL player says, “…Sometimes you’ve got to do what you’ve got to do.” Taking legal action regarding one’s debt is all that there is to get back to a joyful, happy life for many.

Source

Bloomberg: “Bankrupt Ex-Raiders Punter Ray Guy Auctions Super Bowl Rings for $96,216,” Rob Gloster, Aug. 9, 2011