I don't think Bankruptcy gets Ricky off the Hook!!! | Page 2 | FinHeaven - Miami Dolphins Forums

I don't think Bankruptcy gets Ricky off the Hook!!!

By showing the judge, in effect, that you're not acting in good faith; that you have the ability to pay your debts, or at least some of them, but are not making any good faith effort to do it. It's a complex test with many factors, with are found in the 11th Circuit In Re Kitchens decision, but it boils down to good faith and whether you're abusing the purposes of bankruptcy, which are to provide honest debtors with a fresh start.

In Ricky's case, if he pays all his non-exempt assets (which are, as I understand it, substantial) into the bankruptcy estate to be shared among his creditors, if his debt to the dolphins would be otherwise dischargeable in Chapter 7 (i.e, not for fraud, or stealing, or for DIU, and similar bad things) and if all he wants is to be free of the contract so he can continue to play football, I wouldn't bet on a Section 707 bad-faith finding by the court.

By the way, he doesn't have to say he doesn't want to work again. He can continue to work. Once he's discharged in bankruptcy, with some exceptions, he could win the Lotto the next day, and his creditors wouldn't have any claim against his money

This is why the Dolphins are sweating..
 
He still has to serve his suspension for failing the third drug test.

After his recent stunts to avoid detection, I'm sure the NFL substance abuse program will want to piss test him every hour on the hour....during games even.
 
cdz12250 said:
Ricky files Chapter 11. He rejects his contract with the Dolphins under Section 365 of the Bankruptcy Code. He is then a free agent. The Dolphins get a claim against his assets that are part of the bankruptcy, but Ricky can sign with any team.

What assets are then available for distribution under a Chapter 11 plan, or to the trustee in bankruptcy, who collects Ricky's assets on behalf of his creditors, including the Dolphins, if the case is converted to a Chapter 7?

His Florida home is not available; it's his exempt homestead, no matter what its value is.

Interestingly, though, if he has money in a Florida bank account that was earned by him for his services as a football player, if the money was received by the bank less than six months before he files, and if Ricky provides more than 50% of the support of another person (doesn't he have a child?), then those monies are not available to the trustee or his creditors either, because of the exemption for earnings of the head of a family under Section 222.11, Florida Statutes.

Result: Ricky walks. He in effect trades all of his non-exempt assets for a discharge in bankruptcy, signs with another team, and the Dolphins are sucking wind again. Their arbitration play is wiped out. :eek:
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How do you reject a contract that you've already signed?
 
Bottom line is that Wayne needs to put a fine system in place for when the Dolphins and Raiders play next year. Any defender who doesn't tackle Ricky by the facemask or who brings him down by means other than a helmet to his kneecap gets fined. :evil:
 
Read 11 USC 365. Bankruptcy law allows debtors to reject contracts so they can rid themselves of obligations that are financially onerous.
 
So are you telling me for example. I can buy a lot of expensive crap like cars etc...then sell them for cash...then buy a very expensive home with that money...then declare bankruptcy...then I get to keep the home because its my primary residence...I dont have to pay back all my debtors for the stuff I bought...and then I could go get a job or win some money in casino the next day...and I wouldnt owe anyone anything???
 
No. Your discharge in bankruptcy would be denied because of fraud or bad faith. What you outline would be stealing; bankruptcy judges are not stupid.

We're talking about Ricky's situation here.
 
JJ777 said:
So are you telling me for example. I can buy a lot of expensive crap like cars etc...then sell them for cash...then buy a very expensive home with that money...then declare bankruptcy...then I get to keep the home because its my primary residence...I dont have to pay back all my debtors for the stuff I bought...and then I could go get a job or win some money in casino the next day...and I wouldnt owe anyone anything???
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If I'm not mistaken and someone correct me if I'm wrong.

It does not mean you do not owe them. It means they cannot come after you.

However try getting something from them again and they will tell you. Sorry, but you owe us X amount first.
 
So quitting your job to smoke pot is not considered "bad faith"?

I buy a home...I owe the bank $1mil...I want to smoke pot...my company administers random drug tests...I get caught and warned...I decide I would rather quit and continue to smoke pot so I quit...I declare bankruptcy so I can keep my home...

A judge would find this as "good faith" reason to declare bankruptcy? I should hope not...this is after all pretty much the same thing that happened with Ricky. Its one thing if Ricky maybe could show his body was being done irreprable harm and he feared for his health but he is documented saying he quit to continue his drug habit.
 
JJ777 said:
So quitting your job to smoke pot is not considered "bad faith"?

I buy a home...I owe the bank $1mil...I want to smoke pot...my company administers random drug tests...I get caught and warned...I decide I would rather quit and continue to smoke pot so I quit...I declare bankruptcy so I can keep my home...

A judge would find this as "good faith" reason to declare bankruptcy? I should hope not...this is after all pretty much the same thing that happened with Ricky. Its one thing if Ricky maybe could show his body was being done irreprable harm and he feared for his health but he is documented saying he quit to continue his drug habit.
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I work for a debt buying company and deal with bankruptcy all the time. If we were awarded jgmnt in this case (which usually can only be done if a person was sued and served first) then we'd have a lien on all of his properties. If a chp 7 was discharged the debt would then be wiped out but the liens would still remain. So if someone were to try and sell that property they'd then have to deal with the lien holder. That's how it works with everyday debts (ie - credit cards, repos, etc). I'm not positive how it works with a contract though.
 
Well Im more concerned with what is considered "good faith"

I mean if a guy loses all his money because his business is a failure or he suddenly had health related problems that caused him to be unable to work and have huge medical bills then I could understand. But I can't see how this law will protect people simply because they dont want to work...or in Rickys case doesn't want to work so he can smoke pot. Please dont tell me our countries laws are so screwed up that some judge would allow this.
 
JJ777 said:
So quitting your job to smoke pot is not considered "bad faith"?

I buy a home...I owe the bank $1mil...I want to smoke pot...my company administers random drug tests...I get caught and warned...I decide I would rather quit and continue to smoke pot so I quit...I declare bankruptcy so I can keep my home...

A judge would find this as "good faith" reason to declare bankruptcy? I should hope not...this is after all pretty much the same thing that happened with Ricky. Its one thing if Ricky maybe could show his body was being done irreprable harm and he feared for his health but he is documented saying he quit to continue his drug habit.
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while i agree with you that that is Ricky's intentions, i can almost guarantee that won't be his defense... the defense lawyers will NOT say "Ricky wants to smoke weed"... they will say his heart isn't in football anymore, or he was fearing for his own personal health (or some other bull).

the defense's argument will have no mention of marijuana.... you can bet your a$$ the prosecution's will though! :D
 
JJ777 said:
Well Im more concerned with what is considered "good faith"

I mean if a guy loses all his money because his business is a failure or he suddenly had health related problems that caused him to be unable to work and have huge medical bills then I could understand. But I can't see how this law will protect people simply because they dont want to work...or in Rickys case doesn't want to work so he can smoke pot. Please dont tell me our countries laws are so screwed up that some judge would allow this.
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not only is that the best point in this thread, you think Ricky's defense lawyers are going to defeat the Dolphins' team? I think of all of our football season, this is one WIN i can bet on...
 
JJ777 said:
So quitting your job to smoke pot is not considered "bad faith"?

I buy a home...I owe the bank $1mil...I want to smoke pot...my company administers random drug tests...I get caught and warned...I decide I would rather quit and continue to smoke pot so I quit...I declare bankruptcy so I can keep my home...

A judge would find this as "good faith" reason to declare bankruptcy? I should hope not...this is after all pretty much the same thing that happened with Ricky. Its one thing if Ricky maybe could show his body was being done irreprable harm and he feared for his health but he is documented saying he quit to continue his drug habit.
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No. You wouldn't keep your home. The bank has a mortgage. If you don't pay the bank, it will foreclose on its mortgage; bankruptcy will not wipe out secured debt such as a mortgage.

Failing to keep your promise to a creditor, or quitting your job while you are able-bodied, is not the kind of "bad faith" that will disqualify a debtor from bankruptcy relief.

Guys, can we talk about Ricky's bankruptcy and its effect on the Dolphins, please?
 
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