In Illinois and across the United States, people are experiencing a range of financial worries because of the ongoing health crisis still engulfing the nation. That has led to major medical expenses, lost income, the inability to pay debts, the need to use credit cards for everyday necessities and more. When the bills reach a level where they cannot be paid, people are frequently unsure of what to do. There may be a reluctance to file for Chapter 7 bankruptcy because of fears about the process, how it could negatively impact the future, and the perceived stigma surrounding it. In truth, Chapter 7 is a perfectly legal and reasonable way to get into a stronger financial situation and move forward.
Even people with significant income may need Chapter 7
For those who are fearful, it might be beneficial to know there are people who have substantial assets and major income whose debts become so onerous that they need to file for Chapter 7 to get into a better position. A National Hockey League player, Evander Kane, has filed for Chapter 7 bankruptcy in California where he is under contract with the San Jose Sharks. Mr. Kane, 29, owes almost $27 million and is facing legal claims for his debts.
In 2019, he signed a contract with his team for seven years and $49 million. He has stated that he might not play in 2021 due to the health crisis and that he has a newborn baby. He would not be paid for 2021 if he left because the opt-out date for this season was on Christmas Eve. For his career, he has earned approximately $53 million. His assets are reportedly around $10.2 million. According to the bankruptcy petition, he suffered $1.5 million in gambling losses since last year. He had other gambling costs and supports much of his family including his parents and his child.
People facing financial problems may want to consider Chapter 7
As this case shows, anyone can have money issues and be heavily in debt wondering how they can move forward. It does not matter what they do for a living and how much or little income and assets they have. Chapter 7 is a liquidation bankruptcy where the unsecured debts can be cleared. People can then have money left over to pay for support or taxes they owe. While the credit score will initially be damaged, many rebuild quickly and restart their financial lives. For guidance and representation for the Chapter 7 process, consulting with a firm experienced in all types of bankruptcy cases may be able to help.