Michael Vick files for bankruptcy in Newport News court

Pressured by creditors who say he owes millions, Michael Vick filed for bankruptcy protection this week while he sits in prison and plots an NFL comeback.

Vick had paperwork filed on his behalf on Monday for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in his hometown, Newport News. The move could help the former NFL star save some of his current assets but put his future earnings in play, a law professor familiar with bankruptcy proceedings said.

Vick is serving a 23-month prison sentence in Leavenworth, Kan., on a federal dogfighting charge. Peter Ginsberg, one of his bankruptcy attorneys, said Tuesday that Vick is staying in shape and hopes to return to professional football after his release.

In the bankruptcy filing, Vick listed both his assets and his liabilities at between $10 million and $50 million. He listed 30 creditors, including the Atlanta Falcons, his former team, which is seeking $3.75 million in disputed signing bonus money.

Richmond-based Joel Enterprises, the company of Vick's former sports agent, has the largest claim, according to the filing. The agency is seeking $4.5 million from a breach of contract dispute.

Vick will have to give a more detailed account of his assets as the case proceeds.

Chapter 11 will allow Vick to keep his current assets while he tries to settle his debts by arranging a repayment plan with creditors, said Nathan Oman, an assistant professor who specializes in contract and commercial law at the College of William and Mary's Marshall-Wythe School of Law.

"Bankruptcy is a way of essentially stopping the creditors in their tracks," Oman said. "They've got to go through bankruptcy court to get at the assets."

Chapter 7, another common form of bankruptcy, would have liquidated Vick's assets to repay as much of his debts as possible, Oman said.

Repayment plans through Chapter 11 can extend for years, and in Vick's case, the creditors will likely try to gauge his chances at returning to the NFL while negotiating a deal, Oman said.

Also in the bankruptcy filings is a description of a relationship Vick has built with a financial consultant named David Talbot. Vick signed to grant power of attorney to Talbot in June.

In an affidavit, Talbot said he has advised several professional athletes, entertainers and business executives in the past, and he has represented Vick for several months. His resume lists clients, including comedian Dom DeLuise.

Talbot wrote in court papers that he has "earned the trust of Michael's entire family" and added that Vick is "learning the importance of obedience to scriptural precepts."

Talbot wrote that he is arranging fellowship for Vick with several high-profile people, including former NFL star Deion Sanders, Indianapolis head coach Tony Dungy and Pastor Kevin Jonas, the father and manager of the popular Disney boy band the Jonas Brothers.

Talbot, who wrote that he has offices in Hackensack, N.J., and Miami, said in the court papers that the only payment he has received from Vick for his services in the past year is a Mercedes-Benz "physically transferred to me by the Debtor."

He also received $35,000 from Vick's qualified defined benefit plan to be used for the living expenses of Vick's dependents, including his mother and girlfriend, and some of Talbot's expenses, he wrote.

An agreement signed by Vick says Talbot will receive $15,000 per month in fees to act as the "responsible person" on Vick's behalf during the bankruptcy proceeding.

Dave Forster, (757) 222-5563, dave.forster@pilotonline.com