Managing Editor
Former Jacksonville Jaguars quarterback Mark Brunell, citing real estate debt, intends to file today for Chapter 11 bankruptcy reorganization in the U.S. Bankruptcy Court Middle District of Florida.
His attorney, Michael Freed with Brennan, Manna & Diamond, said this morning the filing would be made electronically.
“Mark’s filing is an unfortunate sign of the times and the toll that the economy is taking on everyone. No one is immune from the devastating effects of the unprecedented fall in real estate values,” said Freed.
He said bankruptcy attorney Robert Wilcox, with the Wilcox Law Firm in Jacksonville, will handle the bankruptcy.
Freed issued a statement from Brunell:
“This week with much regret, I will take the step of filing with the court to have my personal finances reorganized under Chapter 11 of the bankruptcy code. After much deliberation, and many years of shouldering enormous amount of debt resulting from passive real estate investments, it has become clear that this is the only viable course of action.
“I have been a silent partner of a group of friends engaged in real estate development with investments in Florida and elsewhere. The timing of the group’s real estate acquisitions at the height of the real estate market, in hindsight, clearly was not good, particularly given the subsequent collapse of the economy. I have personally made the payments on these loans in good faith for several years as we worked hard to find buyers, partners, or refinancing. In the end we couldn’t and I’m no longer able to shoulder this burden.
“Struggles in tough times like these are character builders and I have learned, and am presently learning, many lessons through this process. It has reaffirmed what is most important to me - my faith, my family and friendships.
My family and I will continue our tradition of trying to make a positive difference in our community, especially with initiatives serving children. We plan to continue this commitment, and to celebrate our many blessings each day.”
Brunell maintains a home in Ponte Vedra Beach.
Chapter 11 of the U.S. Bankruptcy Code allows a debtor to reorganize financial circumstances. It usually is used by companies. Individuals filing for reorganization often use Chapter 13.
According to the Wilcox firm’s website, “Individuals can also seek relief in Chapter 11 bankruptcy if their debts are too high for Chapter 13 bankruptcy. Due to the higher court fees, reporting requirements and legal fees involved in a Chapter 11, it is not often used by individuals. However, it may provide individuals with an opportunity to reorganize their debts and make arrangements to pay all or a portion of the debts while obtaining protection from creditors. Chapter 11 bankruptcy generally provides more flexibility than a Chapter 13 bankruptcy reorganization for individuals.”
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