From time to time, it’s worthwhile to look at high-profile bankruptcy cases in the news in order to learn from them. Maybe there are lessons for what to avoid when it comes to our own financial decisions or for what to do when you experience money troubles.
Recently, a star player for the Columbus Blue Jackets filed for bankruptcy. Over the course of his career so far, he’s earned millions of dollars (more than 18 million, according to a news report) – so the obvious question is: Why does he need to file for bankruptcy?
As it turns out, he’s been struggling with a few financial problems, including the following:
- He had needed to default on a number of loans that had unfavorable terms (including high interest rates); creditors filed lawsuits against him, and he was hit with major fees and garnished wages.
- Why did he take out so many bad loans? He entrusted his finances to people who mismanaged it – in this case, his parents. As claimed in the news report, his mother took out millions of dollars of loans in his name from “nonconventional lenders.”
What steps is he taking now to address his financial problems? For one thing, he has reportedly shifted the financial management away from his parents and to people he can better trust. He has also filed for bankruptcy.
While we won’t go into the details of his case here, it’s worth noting that bankruptcy can give you breathing room from creditors and a chance to reorganize your finances and start over.
If you’re in financial straits from bad loans and other financial mismanagement, don’t hesitate to contact a Beavercreek, Ohio bankruptcy attorney. People from all walks of life and income levels file for bankruptcy, for a variety of reasons. There shouldn’t be a stigma – only a chance to start fresh and get the financial assistance you need.