Bankruptcy for Career Athletes and Wealthy Individuals 

 Posted on September 08, 2025 in Bankruptcy Options

When most people think of bankruptcy, they imagine a family struggling with credit card balances or an individual weighed down by medical bills. The truth is that bankruptcy is not limited to everyday households, however, and people from every walk of life find themselves needing this essential legal protection.

Many high-earning professionals, including professional athletes, entertainers, and successful entrepreneurs, eventually face debt problems that are too large to manage on their own. Sudden career changes, high-value property, and complex financial portfolios make these cases different from a typical consumer bankruptcy.

At Law Offices of Chance M. McGhee, our New Braunfels bankruptcy attorney has more than 20 years of experience helping clients in high-stakes situations. We offer free consultations and, because we see first-hand how overwhelming it can feel when financial stress follows a once-prosperous lifestyle, we offer a judgment-free, solutions-oriented approach.

Why High-Earning Clients Turn to Bankruptcy

It can be difficult for some people to understand how someone who once earned millions could need bankruptcy protection. Yet many athletes and wealthy individuals face financial collapse for similar reasons. Sports careers are often short, and injuries or retirement can cause income to drop almost overnight. Divorce, large support obligations, or business losses can drain resources quickly. Investments that looked promising may fail, leaving behind heavy debts. Some people spend freely when money is flowing in, only to discover too late that their income is not sustainable.

The important thing to remember is that bankruptcy is not a mark of failure. It is a legal tool designed to provide relief, restructure debts, and protect valuable assets so that individuals can move forward. For wealthy clients, the stakes may be higher, but the protection is just as real.

Which Chapter of Bankruptcy Fits High-Earning Clients Best?

One of the first questions wealthy clients ask is which chapter of bankruptcy makes sense for them. The answer depends on the size of their debts, the types of assets they own, and whether they still have a steady income stream. Chapter 7 bankruptcy is often the fastest route to eliminating unsecured debt, but it can also involve liquidation of certain assets that are not protected by Texas exemptions. Chapter 13 allows debtors with regular income to reorganize their debts into a manageable repayment plan, which can be a good option for individuals who want to hold on to significant property.

In some cases, Chapter 11 bankruptcy may be appropriate even for individuals. This chapter is best known for business reorganizations, but it can be used by people with complex holdings, multiple mortgages, or unusually high levels of debt. Chapter 11 offers flexibility and control, though it is also more costly and requires careful planning. A skilled bankruptcy lawyer can evaluate the specifics of your financial picture and recommend the option that protects your interests best.

What Happens to Homes, Mortgages, and Valuables in Bankruptcy Proceedings?

For clients who own more than one property, bankruptcy raises difficult questions. Texas law provides a generous homestead exemption that allows you to protect your primary residence. This means that in many cases, your home will not be at risk in bankruptcy. Vacation properties, investment real estate, and secondary homes are a different story and may be subject to liquidation or restructuring, depending on the chapter of bankruptcy you pursue.

Luxury items such as jewelry, art, or high-end vehicles may also become part of the case. While certain personal property is exempt, items of high value may not be fully protected. The good news is that an experienced attorney can often use Texas exemption laws and negotiation with creditors to shield more of your assets than you might expect. The key is to understand which belongings are at risk and how to manage them strategically before and during the bankruptcy process.

Choosing the Right Time for a Bankruptcy Filing

Another major concern for wealthy individuals and athletes is timing. Filing too early can leave opportunities on the table, such as negotiating with creditors or preparing assets to qualify for exemptions. Filing too late can allow lawsuits, judgments, or foreclosures to progress to the point where damage cannot be undone. For athletes and entertainers whose careers have recently ended, it may make sense to file after income has decreased but before debt collectors escalate their efforts.

Strategic timing requires balancing immediate financial pressure against long-term planning. A bankruptcy lawyer can review your financial situation, look at upcoming obligations, and help you determine the point at which filing will give you the maximum benefit.

Protecting Your Privacy in Bankruptcy

Privacy is a frequent concern for public figures. Bankruptcy filings are technically public records, but there are ways to reduce exposure. Sensitive financial information can often be redacted, and filings do not typically draw attention unless the individual is a major celebrity or public official. For most clients, the reality is that bankruptcy happens quietly without press coverage.

That said, protecting your reputation and personal details is an important part of the process. Working with a lawyer who understands both the legal requirements and the practical steps to limit publicity can give you peace of mind. Carefully handling communications, using trusted advisors, and discretion in court proceedings all contribute to keeping matters as private as possible.

Life After Bankruptcy for Wealthy Individuals

Perhaps the most overlooked part of bankruptcy planning is what happens afterward. For athletes and wealthy individuals, bankruptcy is not the end of financial life but the beginning of a new chapter. Discharging debts or creating a repayment plan allows you to restructure your finances and focus on rebuilding. Many people go on to purchase homes, invest in businesses, or even re-establish credit within a few years.

A bankruptcy lawyer can also connect clients with financial planners and advisors to help ensure that the same pitfalls do not repeat themselves. Learning to budget on a reduced income, making conservative investment choices, and avoiding unnecessary debt are all important steps in long-term recovery.

Call a San Antonio, TX Bankruptcy Lawyer Today

If you are a career athlete or wealthy individual facing overwhelming debt, there is no need to face the future alone. Contact the experienced New Braunfels, TX bankruptcy attorney at the Law Offices of Chance M. McGhee by calling 210-342-3400 today for a free consultation.

With more than 20 years of experience representing clients in San Antonio, New Braunfels, and throughout Texas, our firm is ready to help you manage your debts, protect your property, and take control of your financial future.