Re: Loudmouthed Warren Sapp part of the problem with this country...
posted at 5/18/2012 8:16 AM EDT
In response to "Re: Loudmouthed Warren Sapp part of the problem with this country...":
[QUOTE]Interesting article in the Tampa Bay Times on the reasons for the bankruptcy. Here's the key section (read it all at http://www.tampabay.com/sports/football/bucs/the-play-by-play-of-warren-sapps-59-page-bankruptcy-filing/1225135)
But the attorneys who looked at the filing quickly focused instead on its more critical points. Sapp filed Chapter 7, the most drastic bankruptcy alternative that requires the sale of assets to pay off debts. He did this, they say, because he's trying to say that his debts are mostly business debts, not consumer debts. If that's true, it doesn't matter that he still brings in large chunks of cash — $45,000 a month to be an analyst for the NFL Network, appearance fees, money from a publisher for a forthcoming book titled Sapp Attack . What he gets on a monthly basis fluctuates, but it's still the kind of hefty income that typically would disqualify somebody from Chapter 7 candidacy — according to the filing, an average of $115,881 a month. "Warren filed because of business debts," said Pugatch, his attorney. "There's no question in my mind he qualifies for Chapter 7." Sapp lists no credit card debt, for instance, a common form of consumer debt, and he also has no car debt. He shows no cars at all. He and Pugatch have labeled as a business debt the $90,685 he owes National Car Rental, the co-debtor being Nine-Nine LLC, described in the filing as an "artist management" business. Some of the lawyers the Times talked to think he'll be able stay in Chapter 7. Some don't. He can't file Chapter 13, which allows for repayment over time, because he has too much debt. He might end up having to file Chapter 11, some of them say, and the terms of that repayment plan would probably be less advantageous. It's ultimately up to the court to decide. All the attorneys, though, zeroed in on the bottom of Page 41 and the top of Page 42 in the filing. Here, they said, is the reason Sapp had no choice but to file bankruptcy, and why he had to do it now. PNC Bank took $33,333 straight out of his NFL Network paycheck in December, then again in January, then again in February, then again in March, and it would have happened again in April had he not filed on March 30. That's what's on the filing because it calls for this sort of activity over the last 90 days. Sapp says it has been going on for 11 months. The remainder of what he owes PNC Bank: $822,805. Said St. Petersburg bankruptcy lawyer Marshall Reissman: "I can hear him screaming to his lawyer, 'Enough is enough!' " What happened here? The payments to PNC Bank stem from a loan he got to try to build affordable housing in Fort Pierce in St. Lucie County. Sapp had two business partners in a company called Urban Solutions Group that was formed in 2006 — South Florida developer Steve Smoke and former Florida State and NFL player Devin Bush — and their endeavor started in earnest in 2008. It was an admitted failure. "They gave us a loan so we could purchase more lots," Bush said. "The real estate market started going into the tank." PNC sued Urban Solutions and won a judgment in 2010 for $988,691.99. The beginning of the end. Warren Sapp's Waterloo. "Were it not for the judgment and the other debts created by that deal," Pugatch said, "he would certainly not be facing what he's facing right now." "This," Sapp said of bankruptcy, "was the only way I could get out." Sounds like a bad investment in a business that had a good purpse. Doesn't Donald Trump file for bankruptcy every few years because of real estate failures too?
Posted by prolate0spheroid[/QUOTE]
Except that $45,000 a month minus $33,000 taken out is $12,000 a month, or $144,000 a year. I manage to live off a third of that, most people do. He made a bad investment, he can pay it back but he doesn't want to because he likes making $600,000 a year not $144,000 a year. I say tough, cut back, quit buying so much junk, maybe live in a house that's only 4,000 square feet and drive just two escalades. He can still live very comfortably and I hope that's what the judge tells him.