Warren Sapp Exits Bankruptcy, Still Owes Huge Tax Bill
Warren Sapp can rest a little bit easier after emerging from bankruptcy court with a clean slate. A federal judge ended Sapp’s filing when he discharged the former NFL football star from his bankruptcy case.
The Chapter 7 bankruptcy filing was started in April 2012. In his bankruptcy filing Warren Sapp listed more than $6.7 million owed to creditors along with $6.45 million in assets.
Among some of the former football star’s strange possessions were 240 pairs of Nike Air Jordan’s, a lion skin rug, and boxing gloves that were signed by Muhammad Ali. Warren Sapp at one point auctioned off some of his Air Jordan’s so he could pay child support.
After ruling that Warren Sapp finally had his financials in order, a Florida judged on September 24 dismissed the case.
While Warren Sapp may have wiped out millions of dollars in debt, he isn’t quite off the hook just yet; the former NFLer still owes hundreds of thousands in IRS tax debt. Sapp is also still on the hook for child support payments and alimony checks, which were not covered by Chapter 7 bankruptcy protection. Sapp currently owes at least $853,000 to the IRS for taxes in 2006 and an additional $89,000 for 2010 taxes.
Sapp has a little bit of disposable income, claiming in court documents that he was earning $45,000 per month from the NFL Network.
Warren Sapp joins a long list of former athletes who have blown through multi-million dollar contracts in just a few short years.
Do you think athletes should hire better financial consultants to ensure they continue to maintain a certain lifestyle after exiting the NFL for uncertain futures?