Judge rejects Vick's bankruptcy plan

Judge rejects Vick's bankruptcy plan
April 4
Atlanta Journal-Constitution

"A judge has rejected suspended Falcons quarterback Michael Vick's plan to emerge from bankruptcy, but he is giving Vick another chance as he nears the end of his prison sentence on federal dogfighting charges.

Judge Frank J. Santoro called Vick's plan unworkable Friday, saying it would leave the suspended NFL star with up to a $9 million "hole" on top of the payments he would have to make to his creditors. As of December, Vick had $16 million in assets and $20.4 million in debts, court records show.

The judge added that some of Vick's plans to make money once he gets out of prison are speculative - including a $600,000 proposal for him to star in a documentary. And Santoro suggested that Vick should consider selling more of his assets, including one of the two houses he wants to keep for himself and his mother in Virginia.

"I am going to give you one more chance to come up with a workable reorganization plan, but that is your last chance," Santoro told Vick, who wore a gray suit and white dress shirt to the two-day hearing. "I think it would be important for you to make the best of it."

Santoro ordered a hearing on the status of Vick's next bankruptcy plan for April 28. Vick's attorneys, meanwhile, complained they have been handicapped in working with Vick because he has been imprisoned in Leavenworth, Kan. They asked Santoro to allow him to remain in a local jail here until the April 28 hearing. Santoro said he did not have the authority to do that but would consider ordering his appearance at the April 28 hearing.

During his ruling, Santoro called Vick a phenomenal football player who had "limited financial sophistication" and trusted some people with his money when they "may not have been worthy of your trust."

"You need to have strong controls in place with respect to your finances," Santoro advised Vick.

Earlier in the day, Santoro asked him if he realized that he had racked up about $3.7 million in bills for professional services during the course of his bankruptcy case, or about $13,700 a day for the last 270 days. Vick said he was aware of the costs.

Vick also testified that a series of financial advisers made bad investments with his money and inexplicably bought $90 million in life insurance for him and his mother, requiring him to pay $1.2 million in annual premiums. Vick also talked about how he has financially supported a large group of relatives and friends.

"I put a lot of strain on myself. It was a big burden," Vick said. "I don't know why, but I feel I was obligated to do that, coming from where I came from.""
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