The Associated Press has reported that at an April 28 hearing before U.S. Bankruptcy Judge Frank J. Santoro (U.S. Bankruptcy Court for the Eastern District of Virginia), Michael Vick's attorneys indicated that they plan to submit a revised bankruptcy plan which will incorporate many of the suggestions made by Judge Santoro earlier this month  Judge Santoro rejected his first proposal.  Under the new proposal, Vick will sell vehicles, as well as one or both houses, which he had hoped to keep under the previously rejected plan.  The new proposal will still be based largely on the assumption that Vick will be able to resume his once-lucrative NFL career (Vick is still incarcerated pursuant to a 2007 plea deal arising out of dog fighting charges, but is expected to be released to home conffinement next month).

Vick's attorneys advised Judge Santoro that they had made substantial progress on drafting a new Chapter 11 plan, but they need more time. The Court scheduled another hearing for June 9, which will allow attorneys to meet with Vick in person after his May 21 transfer from a federal prison in Kansas to home confinement in Hampton, Va.

Vick's bankruptcy is unusual because he has filed under Chapter 11, a provision typically used by partnerships or corporations. Chapter 11 is reorganization, as opposed to liquidation. 11 U.S.C. Sec. 1107. Debtors may emerge from a Chapter 11 bankruptcy pursuant to the plan. 11 U.S.C. Sec. 1121-1129. The debtor's business may continue to operate during a Chapter 11 bankruptcy. 11 U.S.C. Sec. 1108. Most individuals who seek bankruptcy protection file under either Chapter 7 (liquidation) or Chapter 13 (wage earner's plan). Vick may have sought to avoid Chapter 7 liquidation in the hopes that he could keep various assets. (In addition, Chapter 7 filers must satisfy a means test, 11 U.S.C. Sec. 707, a formula designed to keep filers with higher incomes from discharging debt through Chapter 7 bankruptcy; Vick's income may have been too high under the means test).  Under Chapter 13, Vick could have obtained protections, similar to those available under Chapter 11, without liquidating his assets. In the case of individuals, Chapter 11 bears several similarities to Chapter 13. See 11 U.S.C. Sec. 1115, 1123(a)(8), 1129(a)(15).

-Drew Broaddus