Antoine Walker had amassed $108 million in 2008, when he ended his 13-year basketball career.

He came into the league at the age of 19. Antoine was from humble beginning, "so I was not used to having money at all," he noted.

It appears that the noble beginning caused Walker to overspend, making him go bankrupt two years after retiring.

He picked up some aggressive spending habits – spending on cars, clothes and jewelry as well as helping family and friends. The rest of his money was lost in real estate investing when the market tanked after the Great Recession.

Fortunately, he recovered from bankruptcy two and a half years later.

How he got out of bankruptcy:

Walker was able to file for Chapter 7 bankruptcy, he said, which is also referred to as a liquidation or straight bankruptcy.

In this process, all unsecured debt – think personal loans, credit cards and some medical expenses – is wiped away, but a court will take possession of your assets such as property. A court-appointed trustee will handle your case and may sell some of your assets to cover your debts.

In chapter 13 bankruptcy, you generally get to keep ownership of your assets and get a more affordable payment plan from your creditors. However, you must fit certain requirements – you need to have enough income to afford your monthly payments, and your debt must be under a certain amount.

The limits for chapter 13 bankruptcy in 2020 were nearly $420,000 in unsecured debt and roughly $1.25 million in secured debt.

According to a professor at the University of Illinois College of Law, said Robert Lawless, “If you don’t see your financial situation improving after bankruptcy it’s not a good time to file."

“You need to have a CPA, financial advisor, agent, lawyer – these need to be separate but work together,” Antoine said.

Today, Antoine helps others avoid the money issues he’s overcome. He’s a consultant with Edyoucore, a financial literacy company that focuses on teaching athletes how to manage their money.

“I may never again make $108 million but I can have a comfortable lifestyle. That’s been my mindset as I got back on my feet,” he said.

Source: The Independent Ghana