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Schilling's famous bloody sock up for auction after bankruptcy

The unfortunate reality in this economy is that startup businesses fail many, many times and must file for bankruptcy. However, it is not every day that a business that was started by a World Series pitching star must file for Chapter 7.

As many Chattanooga residents are likely aware, Curt Schilling is a famous former Red Sox pitcher who has been known for his blood-stained sock in the 2004 World Series. Likely, fewer people know about a video game company that Schilling started, which unfortunately failed and had to file for Chapter 7 bankruptcy. Because of all the debts that Schilling accrued, he is being forced to sell off, at auction, the famous sock. It is expected that the sock will bring in over $100,000 at auction. Mr. Schilling personally invested over $50 million in the company and had also personally guaranteed loans to the company as well.

Usually, in a Chapter 7 bankruptcy for individuals, as opposed to Chapter 7 for businesses, it is not required that anything be sold off. The reason for this is that a Chapter 7 bankruptcy is usually only filed when the individual has low assets, low income or both. Additionally, the personal debt is usually immediately discharged. It is also important to note that in a Chapter 7 bankruptcy, the filing party does not usually lose his or her home. If the home cannot be protected with a Chapter 7 bankruptcy, the filing party will likely file a Chapter 13 bankruptcy instead. The only time an individual must pay or give up assets in a Chapter 7 bankruptcy is usually if he or she is intentionally trying to get rid of an asset, such as a house or a car.

In these tough times, many Americans, even those whom most would consider well off, are still facing financial challenges. It is usually best to seek out help immediately to try to get a fresh financial start.

Source: wrcbtv.com, "Schilling's bloody sock going up for auction," Erika Niedowski, Jan. 17, 2013

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Kenneth C. Rannick, P.C.
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Chattanooga, TN 37411

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