After rejecting a proposed plan, a U.S. Bankruptcy judge has ordered disgraced NFL quarterback Michael Vick to submit a new bankruptcy agreement by July 2nd.
Vick (who was once the highest paid player in the NFL with a 10-year $130 million contract with the Atlanta Falcons) is just one of a number of celebrities and athletes who have filed for bankruptcy despite earning millions from significant contracts and endorsements.
Judge Frank J. Santoro denied Vick’s plan to repay millions in debt because there is no guarantee that the NFL will allow him to play again. (Vick had identified a football contract as his main source of income, but it is unlikely he will receive the same compensation as he did before the scandal.)
A closer look at Vick’s bankruptcy filings — to see how he got himself into this mess in the first place — reveals the vast amount of money he spent, one sum he even described as “chump change.” Although he was trying to provide for his children, mother, and fiancee, a number of Vick’s debts could likely have been prevented with a little more financial literacy.
Vick owned 9 cars (4 of which were still being paid off, one on which he owes $63,000), 2 boats, 5 horses, and 4 homes. The statement of Vick’s financial affairs indicates he never used many of the cars, boats and houses that he was paying for. His liquid assets have also gone up in smoke with $3.5 million in “miscellaneous” transfers and $1.1 million in checks made out to “Cash.”
Cases like these — involving public figures that many Americans idolize — are a sobering reminder of the importance of financial education. No matter how much money you have, if you don’t utilize fiscal responsibility and prudence when spending, it could all be gone before you even realize it.
