An unfortunate myth about bankruptcy is that those who file are somehow personally responsible for their financial troubles. Many people in California and elsewhere may believe that they themselves are immune to such a fate and that personal bankruptcy is only for the irresponsible and financially inept. In reality, however, people from all walks of life can make use of personal bankruptcy protection, as evidenced in the case of former NFL player Marques Ogden.
Ogden was once a student at Howard University on a basketball scholarship. He had no aspirations to play for the NFL. Instead, he planned to earn his college degree in finance and take a career path similar to that of his father, who is an investment banker. However, he was approached with an opportunity to become a draft prospect, and he choose to take advantage of that chance.
Ogden was picked up by the NFL and was paid a signing bonus of $75,000; he went on to earn around $400,000 in his first year and managed to set aside $2.5 million before retiring in 2009. He started a construction company and used part of his savings as an investment in that business. He also took out loans on his home to finance the venture. All was well until the company took on a big contract that was rife with problems. Ogden lost an estimated $2 million on that deal, all over a period of just 90 days.
As this case demonstrates, even a successful business owner with a solid education in finance and a history of success can become mired in financial turmoil. Ogden eventually filed for personal bankruptcy to ease his debt, and he has since rebuilt success as a motivational speaker and a football camp owner/operator. His story should help readers in California and across the nation take a different view on the bankruptcy process.
Source: kspr.com, "This former NFL player lost $2 million in 90 days", Kathryn Vasel, March 31, 2016