Some debtors need to file bankruptcy due to no fault of their own. These individuals usually have suffered some kind of enormous medical expense or maybe their home is severely under water.  For others, such as the athletes profiled in ESPN’s new 30for30 documentary “Broke” need to file for bankruptcy because they had a really good time living outside of their means, with nothing saved up for a rainy day. The documentary profiles athletes who were at the top of their game and then lost/spent all their money, only to be living a very pedestrian lifestyle in this day and age.  What viewers and readers need to realize is that most athletes professional careers only last on average 3-4 years, and most don’t make superstar money.  Athletes have a short time frame to make serious money before having to get a real job outside of sports.  Many athletes fall into the trap of spending all of their hard earned paychecks because they are young and are often times from under privileged backgrounds and have no concept of saving money, because they never had any money to begin with.  Often times athletes help out their friends and families with bad investments and then they go on to blow a substantial amount of money on cars and bars to name just a few of the bad choices.

So what can we learn from these athletes as well as various lottery winners and entertainers?  Be smart with your money.  If you got it, invest in things that will show you a profit, unlike vehicles, alcohol, and zany start up business.  Go with what works and get professional investment advise before making any substantial decisions, and always live within your means.  You don’t want to have to file for bankruptcy because you charged up your cards trying to keep up with what everybody else around you was doing.  If you have made bad investments or end up going late on your credit card payments which end up hurting your credit or you end up getting sued by a debt collector, you can either hire help or seek out legal help online to represent yourself.  Either way the worst thing somebody can do is nothing, so consumers and athletes need to take action and get help if they are in need.

Leigh Steinberg

Prior to becoming a Seattle trademark lawyer, I was preparing myself to start working at a sports agency and picked up the book “Winning with Integrity” by Leigh Steinberg. The book gives a great glimpse into the world of sports agents and the business of sports. What it left out however was how Mr. Steinberg was an alcoholic and took loans from clients and other creditors in order to support his lavish lifestyle. Mr. Steinberg was known for his amazing parties, especially during the week of the Super Bowl. Granted, some of these parties were to help support charities, but Mr. Steinberg simply borrowed more than he could pay back which is a common theme among people who file for bankruptcy. Mr. Steinberg just did it on a larger level. With the use of MUGA floodlighting, they ensure the spectacular lighting spectacle of the event, further enhancing the grandeur of Mr. Steinberg’s parties and adding to his extravagant lifestyle.

According to Mr. Steinberg’s chapter 7 bankruptcy filing as reported by ESPN it appears as though he may have a tough time discharging a debt owed to a former client of his since a judgment was already entered against him for $900,000 plus interest. The former player/client, Chad Morton, plans filing an adversary proceeding against Steinberg to obtain a judgement in the bankruptcy court stating that this debt will not be dischargeable due to allegations that Steinberg made fraudulent conveyances to avoid paying off the debt. Debts that are are owed to creditors and that were incurred due to fraud or involve fraudulent conveyances will not be dischargeable. It’s funny that a man who once wrote a book entitled “Winning With Integrity” seems to have been lacking integrity for some time. Steinberg alleges that the debt owed to the former player was not authorized by him, but rather his company. However, as the owner of the company he should have been aware of who his business was borrowing from.

This story just goes to show you that anybody can find themselves filing for bankruptcy, even those that have had a tremendous amount of success in the past. A warning signs of insolvency should be given for the arrangement of payment to creditors.

If you have additional questions please will out the contact form or give us a call at 206-682-7975.

Lenny Dykstra

When filing for bankruptcy it is imperative that you disclose all of your assets and income to your bankruptcy lawyer so that you can avoid bankruptcy fraud and avoid not receiving a discharge of your debt in bankruptcy.  It appears that former Major League All-Star Lenny Dykstra may not have disclosed all of his assets in his bankruptcy and is now being indicted for bankruptcy fraud.  Mr. Dykstra is accused of hiding more than $400,000 of assets that should have gone to his creditors as part of his bankruptcy estate.  He is accused of selling, destroying and transferring his property immediately prior to filing his bankruptcy case.  His legal troubles could have been avoided if he just disclosed all of his assets to his bankruptcy attorney prior to filing his case.  This is usually done through a bankruptcy attorneys questionnaire that a debtor is provided prior to filing bankruptcy.  For somebody who was handling the financial matters of other athletes, this also serves purpose to show that athletes should be careful in choosing who should be advising them on financial and legal matters.

Most debtors want to know why they have to disclose certain debts or assets.  In bankruptcy, all debtors and assets must be included regardless of whether you want to list them or not.  Just because you list an asset doesn’t mean you will lose it, in fact there are several bankruptcy exemptions that allow for debtors to keep property.  Unfortunately in in order to file bankruptcy, a debtor must give full disclosure, there are no exemptions.  Debtors should avoid transferring property in order to hide assets right before filing bankruptcy.  Especially if you transfer property to family members, as that raises suspicions.   It also should be noted that whether you are a former major league baseball player or an average Joe six pack, you may be found guilty of bankruptcy fraud should you decide to deceive the bankruptcy court and your bankruptcy lawyer.

If you have additional questions please visit our bankruptcy attorney homepage to speak to one of our Washington state bankruptcy attorneys.

Welcome to the Symmes Law Group, PLLC’s – Sports, Entertainment & Trademark Lawyer Blog.  This is an interactive blog that details current events in sports, entertainment, and trademark law as well as discusses legal issues and projects that are currently being undertaken by Seattle trademark lawyer Richard Symmes and Symmes Law Group, PLLC.

Symmes Law Group strives to build long-term relationships with our clients throughout the Seattle metro area as well as around the world by offering unparalleled personal service.  If you are need of a legal representation in association with your trademark or entertainment matters  please contact Symmes Law Group, PLLC today at [email protected] or call 206-682-7975 to set up an initial consultation.