Here's a first for the Bucks County Bankruptcy Blog -- I'm linking to TMZ.com. I'm not writing about the latest celebrity pregnancy, however. I'm still writing about relevant issues relating to being a Bucks County Bankruptcy attorney.
It appears that Warren Sapp, former NFL superstar, had a "massive" collection of Nike shoes sold at auction pursuant to a Chapter 7 bankruptcy filing.
For those who don't know, when you file for Chapter 7 and have "excess assets", a Trustee can liquidate the assets. If, for example, a person has a second home that is paid off, the Trustee could hire a realtor to
So, I have not read Warren Sapp's bankruptcy petition. But what I guess happened was that he exceeded the debt limit on a Chapter 13 (reports say he was "millions in debt") and decided that he was willing to have some assets liquidated by the Trustee to satisfy some portion of the debt, while discharging the remaining "balance". His attorneys told him that some of his assets that were "non-exempt" would be sold and he was willing to do that to have the vast majority of his debt discharged.
Now, if Mr. Sapp did not list these assets, he would be committing fraud and false pretense in a bankruptcy. You never want to do that as you are looking at significant jail time.
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