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Michael Vick Living on An Allowance

by Minority Fortune

The football player with the second chance is facing his debts. Michael Vick may have been lucky enough to score a $4.1 million contract with the Philadelphia Eagles. However, he’s still in massive debt that leaves him on a budget set by a court-appointed trustee. In 2008, he filed for Chapter 11 bankruptcy because he had numerous creditors seeking their money. Now he’s parting with 2/3 of every dollar he earns in order to pay back his debt.

Before Michael Vick filed for bankruptcy he attempted to hide $5 million by giving it to family and friends. The courts discovered this money and are attempting to recover it. The man in charge of managing Vick’s money will file a lawsuit against the recipients of that money.
Vick’s budget is so tight that even the allowance has been delegated in a manner overseen by the court. Yahoo Sports breaks down the allowance:

Vick can spend $4,250 per month on rent and utilities and $472 per month on a car. His mother, who was on Vick’s payroll during his headier, pre-prison days, can receive $2,500 per month.
• Other obligations Vick owes include mortgages, child support, fees for his agent (who gets $800,000 through 2015) and for his tax lawyers (who will eventually receive a total of $2.6 million). The allowance does allow for Vick to pay $1,355 per month for private school for the two children he has with his fiancee, Kijafa Frink. (Munson calls it a “rare bit of extravagance.”)
• His creditors stand to receive $12 million through 2015, provided Vick continues to receive a multi-million dollar salary.

If only these sports figures and celebrities would realize that their earning power creates more problems. The bright side to all of this may be that Michael Vick is learning his lesson. At least his debt has been restructured. At least he’s still earning an income. He should move forward in his life and learn to manage his own money independent of any court’s dictation.

Attention, all celebs and athletes, Michael Vick once spent money the same way you did. Pay attention to his situation and get your finances in order before this happens to you too.

*Image courtesy of Only the Blog Knows Brooklyn.
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