Back in May, we discussed the fact that financial troubles plague many athletes despite their million-dollar contracts in the post "Athletes filing for bankruptcy to ease financial burden." Like some average Arizona residents, athletes find themselves facing financial troubles and may consider filing for personal bankruptcy to find some respite from their problems.
Evander Holyfield, former heavyweight champion, was famous for many things during his illustrious boxing career and, as a result, his financial struggles were well documented by the media. According to some reports, his fortune was around $250 million in the 1990s, but various financial decisions led to his bankruptcy filing around 10 years ago to alleviate his financial burdens.
He does not appear to have made the best use of the fresh financial start offered by bankruptcy, however. His mansion was recently foreclosed, having sold at auction for $7.5 million, substantially less than the $14 million the boxer owed on his house.
Arizona residents who are struggling to make ends meet may not be able to identify with an athlete's lifestyle and may be surprised to hear Sports Illustrated's claim that 75 percent of former NFL players are bankrupt within two years of retirement. However, in some ways their financial problems are similar to those ordinary people face--a huge amount of the Holyfield's fortune was spent in yearly child support payments to his children.
Additionally, many athletes become rich very quickly, and are not well-versed in how to handle their new wealth.
In today's difficult economic times, a few poor decisions can cause major financial woes, whether a person has a fortune to his or her name or not. Filing for bankruptcy may be the best solution to regain control of finances and wipe out bills to start a financial life afresh. Those filing for bankruptcy are wise to talk to their bankruptcy attorneys and credit counselors about how to make sure to build a strong financial footing post-bankruptcy.
Source: Huffington Post, "Evander Holyfield's Unable To Avoid Foreclosure on $14 Million Mansion," James Sunshine, July 12, 2012
