We've previously written about John L. Smith's bankruptcy filings. Yet months after a settlement was thought to be near this matter has not yet been resolved.
The former Arkansas Razorbacks football coach's personal bankruptcy filing resulted in accusations being thrown about by his creditors. These creditors claim the coach had attempted to defraud them concerning the discharge of particular debts.
One creditor filed a lawsuit in federal court to prevent a $4.5 million debt from being discharged in the bankruptcy proceedings. Former business partners have also filed a lawsuit against him to prevent $8 million in debt from being discharged that Smith allegedly owed them. Though it now appears that these disputes have been settled, but it remains for the bankruptcy judge to approve of the discharge of the debts.
There are a great many benefits in the filing of Chapter 7 or Chapter 13 bankruptcy. Chapter 7 can allow individuals to discharge of debt while still able to hold onto certain property. Chapter 13 allows a person to reorganize one's debts to make payments more manageable. In either circumstance it can provide an individual greatly in debt a fresh start.
However, we do need to remind readers that the filing of a personal bankruptcy does not automatically mean that the individual filer is free to walk away unscathed in all situations. There is a temptation to hurry a bankruptcy along and not pay particular attention to the debts listed on the bankruptcy filing.
As the above circumstances indicate, creditors may still have the right to contest bankruptcy filings. Therefore care must be taken in the manner that a bankruptcy filing is handled, and it's always a good idea to seek the counsel and advice of an attorney experienced in the bankruptcy area.
Source: Arkansas Business, "Former Hogs Coach John L. Smith Nearer to Bankruptcy Settlement," Aug. 12, 2013