Just ten years ago Bernie Kosar presented himself as a humble but confident businessman when he spoke of other professional athletes. He said, "A lot of athletes think that sports is [sic] a business and since they play sports they're businessman. That's a bad assumption. I know athletes who would like to have what they made. That tells you what some have done with it." In an ironic turn of events for the former Miami Hurricane and NFL quarterback, he filed for Chapter 11 bankruptcy last month.
Chapter 11 is usually used by companies to reorganize, but it is also used by individuals with large debts. Mr. Kosar fits this criterion well, because he has assets estimated between $1 million to $10 million but liabilities between $10 million and $50 million.
Kosar is remembered well from both his professional and college football careers. As a freshman he quarterbacked the University of Miami to its first national championship, and a season later he played in one of the most memorable college football games of all time. Kosar was the quarterback for Miami when Doug Flutie completed a Hail Mary to lead Boston College over Miami.
His football fame has long past, but things can get better for him. The filing will give Kosar a good opportunity to turn things around, and he needs it. Several unfortunate events have occurred in both his personal and business life.
In 2007 his wife, Babette, divorced him accusing him of acting "financially irrationally and irresponsibly" by "giving away money" and other assets. The court awarded her $3 million in the divorce, all of which she is still owed.
A steakhouse with his namesake in South Miami went out of business last year. The owner of the property obtained a judgment against Kosar's company in March for over $66K.
A Florida bank is also owed about $10 million on properties formerly owned by Kosar's businesses. The three apartment projects have since been foreclosed upon.
Kosar also has several tax problems. The Internal Revenue Service is owed over $231K for Kosar's income taxes in 1996. Also, the IRS says he owes about $322K for tax years 2000, 2006, & 2007. Additionally, he owes more than $115K in property taxes on an estate of his.
Anyway, there are still more liabilities to list, but you get the gist. He's in a huge hole that he cannot get out of. Like many people right now, the recession has killed his ability to claw his way through his mound of debt. He would not have ever been able to get rid of his debts, so bankruptcy will give him an opportunity to get things to a manageable level.
Many people will never make the kind of money that Bernie Kosar has made, and many will never be in as much debt as he is, but his situation can still be compared to others. If you find yourself drowning in a sea of debt, be sure to contact a Dallas-Fort Worth bankruptcy attorney today.