Creditor examines coach's finances in bankruptcy proceeding

A college football coach's personal bankruptcy proceeding has been delayed after a creditor and the trustee overseeing the matter requested additional financial information. After initially believing that he could quickly discharges his debts by filing for Chapter 7 bankruptcy, the football coach now realizes that the personal bankruptcy proceeding will be a more lengthy proceeding. The hurdles that the coach faces are common and teach residents of De Soto County in Mississippi who are considering bankruptcy or are already involved in a bankruptcy matter that debt relief is not always simple.

The development in the football coach's bankruptcy case is an update to September blog, which initially examined the reasons that the coach filed for Chapter 7 bankruptcy. As noted earlier, the coach had invested in some real estate in Kentucky but decided to file for bankruptcy when the real estate market weakened and the deals went bad.

Now, the coach faces questioning from one of his creditors and the bankruptcy trustee. Apparently, the trustee has not received all of the financial documentation that it requested from the coach. Additionally, one of his creditors seeks to place the coach under oath to more fully examine his finances. Some questions have surfaced about whether the coach attempted to shield some of his current income from creditors.

There are trustees in nearly every bankruptcy matter involving an individual consumer. In a Chapter 7 bankruptcy, the trustee is in charge of the bankruptcy estate. Once an individual files for bankruptcy, the debtor essentially gets separated from his assets. The Chapter 7 trustee is in charge of collecting all of the assets, selling them off and distributing the proceeds to the creditors.

Chapter 7 bankruptcy can be a very helpful option for people struggling with large amounts of debt. A bankruptcy attorney can help Mississippians interested in filing for bankruptcy understand the implications of a bankruptcy filing in relation to a consumer's assets before filing. Doing so can help avoid a drawn out bankruptcy battle like the football coach is currently facing.

Source: Detroit Free Press, "Arkansas coach's bankruptcy case turns contentious," Brent Schrotenboer, Nov. 14, 2012

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