Creditors force March Madness icon into settlement using involuntary bankruptcy
We will soon face the daunting challenge of completing our brackets for the NCAA tournament. This requires predicting which teams will advance through each round, based on a combination of loyalty to alma maters, blind guessing and deciding which team has the superior mascot. The completion of one’s bracket is closely followed by moments of joy, heartbreak and shock, as underdogs prevail, Goliaths fall and games are decided in the final seconds. Tournament coverage will undoubtedly include a flashback to Christian Laettner’s 1992 iconic buzzer-beater that catapulted Duke into the Final Four. From there, Laettner went on to play in the NBA and earned over $60 million. By June 2016, however, Laettner’s creditors were forcing him into a Chapter 7 bankruptcy after he failed to repay $14 million in soured real estate loans.
Just four months later, Laettner reached a settlement with his creditors and the parties agreed to dismiss the bankruptcy. The success of Laettner’s creditors illustrates how involuntary bankruptcy can be a valuable tool. To read more about the requirements for filing an involuntary bankruptcy, the ensuing process, the advantages of doing so and the circumstances that may warrant such an action, click here.