Living in excess amidst fading athletic glory has taken its toll on a fair number of professional athletes.  Detroit Pistons 1989-1990 Championship team member Rick Mahorn is no exception, as he recently filed for Chapter 7 personal bankruptcy.

Rick Mahorn wasn’t living outrageously beyond his means, however Rick Mahorn lost his home to a foreclosure—he and his wife defaulted on a $500,000 mortgage, despite a comfortable income of $100,000 per year to sustain their home. 

Mahorn fell behind after spending twice more than he earned every month, according to his bankruptcy filing records—though he made $6,161 each month, his average monthly expenses were $12,763.  At the time of their filing, the Mahorns had little more than $1,100 in two separate checking accounts.  Their Chapter 7 filing lists $223,000 to pay off and $518,000 in liabilities. 

Their bankruptcy trustee has been around the block with former professional athletes’ bankruptcies, and accused Rick Mahorn of concealing some assets in his bankruptcy filing—mainly the NBA championship ring he won with the Detroit Pistons in the 1989-90 season.  The ring reserves Rick Mahorn’s place in history, as he competed against Michael Jordan during the introductory chapter to the Chicago Bulls’ reign of glory.  Mahorn maintains that he gave the valuable championship ring to his mother and doesn’t know of its whereabouts. 

Mahorn’s financial woes are a stark comparison to living the American dream of making it big as a professional athlete; losing one’s home is every American’s nightmare. 

If Rick Mahorn had filed his bankruptcy before their mortgage was due, he may have been able to avoid the foreclosures of his home.  If you are falling behind and scrambling for the funds to pay your mortgage every month, there is a mainstay of legal protection that can help you keep your home.  You can learn from other debtors’ mistakes when you file for bankruptcy.  Protect your home and family—call the experienced bankruptcy attorneys of Legal Helpers and receive a free initial legal consultation.  Call us toll-free at 1-800-260-1402 today.

While a chapter 7 bankruptcy can be a great way to discharge your debts and get a fresh start on your finances, there can be issues down the road if you don’t have a competent attorney representing you through the process.

Sometimes these issues won’t become apparent until years down the line. To give a (rare) example, if you have a lien placed against you during the bankruptcy proceedings, it’s possible that the creditor may be listed on the case without you or your attorney being aware of the judgment.

Not being aware of a judgment creditor lien being placed on you can prevent you from taking out loans or being able to refinance your home in the future. In these sorts of cases (where you or your attorney is unaware of a lien) no motion will have been filed to avoid the judgment lien.

(Note: One of the best ways to avoid this sort of situation is to obtain copies of your credit report, which can be done about twice a year without charge).

Also, it’s possible that you might accidently neglect to mention any pending claims or lawsuits while filing bankruptcy. The consequence can result in the bankruptcy trustee viewing these claims as potential assets of you bankruptcy estate. In some states, it is possible for the trustee to take over the claim and even fire the lawyer you had working on the claim to settle the case. They would not need your permission to take these actions, and they are not required to inform you this has been done.   

The skilled bankruptcy attorneys at Legal Helpers can prevent situations like this from ever occurring. Our attorneys are seasoned and experienced and know exactly what to expect in your bankruptcy. We’ve seen all kinds of bankruptcy cases and can confidently guide you toward the best solution to your debt. Call 800-260-1402 for a free bankruptcy evaluation today.   

Berry Chill LLC, the all-natural frozen yogurt company, has recently filed for Chapter 11 bankruptcy protection. CEO Michael Farah has stated that they are trying to "clean the slate" after opening several stores in what he calls "bad locations".

Mr. Farah said that all four Chicago Berry Chill stores will remain open at least temporarily, but that the company has not yet decided on the fate for its Loop locations, located at 132 N. La Salle Street and 500 W. Madison Street, in the Ogilvie Transportation Center.

He states that Berry Chill’s flagship store, 635 N. State Street, continues to thrive, but that the Loop stores struggle since they are not open on nights and weekends.

The bankruptcy should help the Chicago-based company move forward with growth plans that include opening a Lakeview location, according to Mr. Farah, a former commodities trader who started the company in 2008.

The bankruptcy filing shows that the company has between 50 and 99 creditors, between $1 million and $10 million in assets and between $1 million and $10 million in liabilities. Mr. Farah declined to be more specific about the company’s finances. Records show that the company owes $447,000 to law firm Drinker Biddle & Reath LLP and $309,000 to the Illinois Department of Revenue.

Perhaps, in these difficult economic times, most people do not want to increase the risk of their own bankruptcy by shelling out $5 for 8 ounces of frozen yogurt, despite the claims that the active enzymes found in the frozen treat can increase metabolism, boost the immune system and freshen breath.

If you find yourself needing to file for Chapter 7 or Chapter 13 personal bankruptcy, call a Legal Helpers attorney for experience that you can trust. Call toll-free 800-260-1402 to speak with a knowledgeable and compassionate bankruptcy lawyer.