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Ex-football player still owes money even after Chapter 7

Florida Chapter 7 bankruptcies can apply to individuals, as well as to businesses. There is a difference in how they are applied of course. For a business, filing for Chapter 7 means that all the company assets will be liquidated, so that the company debts can be paid. For individuals filing for Chapter 7, creditors have to be paid and this is done by liquidating property to do so. Although, when people utilize Chapter 7 some property is exempt and cannot be touched via the liquidation process. In the end, bankruptcy is a way for businesses and individuals alike to get a fresh financial start.

The whole idea behind a bankruptcy filing is to free one's self from insurmountable debt. Normally, bankruptcy is a last resort. The one thing about debt is that it can affect everyone, no matter who you are. For instance, Warren Sapp, a former professional football player, filed for bankruptcy in 2012. Even though, he filed for bankruptcy, that did not discharge is responsibility to pay child support. Child support is one of those bills that do not disappear with a bankruptcy filing. As such, the payments still have to be made.

At the end of the day, bankruptcy is a legal proceeding. This means that the courts are involved to a certain degree with respect to the procedures that have to be followed. An individual can make a filing unassisted as long as all the correct paperwork is submitted to the court. Court interference is really limited to assessing whether or not the filing was properly done. Otherwise, the court doesn't really have a say in the matter.

A chapter 7 filing for individuals is one way to manage one's debt. Nonetheless, asking for help may be the first step in managing that debt.

Source: TMZ, "Warren Sapp's Ex-Wife You Still Owe Me $3 Million," Jan. 5, 2014

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