In this bad economy, bankruptcy is increasingly becoming a fact of life for many Americans. Even very successful people have found themselves facing hard times after new ventures failed to perform as expected.

Recently, it was announced that Olympic gold medal wrestler Rulon Gardner has filed for bankruptcy. According to his filings, he owes creditors approximately $3 million but has an annual household income of just over $37,000.

Gardner’s attorneys say that a lot of the debt is related to business ventures that failed to offer expected returns. After rising to Olympic fame, Gardner moved to Utah and opened a gym. He also started a restaurant in his hometown in Wyoming.

In addition to these business problems, Gardner said that he also lost money after being victimized by investment fraud.

Gardner is scheduled to officially tell his side of the story in a deposition on October 10. Later this fall, he is also expected to auction off many of his possessions in an effort to earn money to pay back his creditors. The local sheriff’s office has already seized possession of a number of items including watches, knives, sports memorabilia, wrestling shoes, a Porsche and a Harley-Davidson motorcycle.

Filing for Bankruptcy in New Jersey

Although Gardner is a high-profile individual, his experiences are not all that different from the struggles that many New Jersey residents are encountering in the recession.

Nobody starts out with a goal of filing for bankruptcy. However, unexpected problems do arise. When debt becomes unmanageable, the best response is often to file for bankruptcy. Bankruptcy can help debtors discharge their obligations and start over fresh.

Source: Salon, “Olympic gold medalist files for bankruptcy,” Paul Foy, Sept. 20, 2012.

To learn more about this issue, please visit our page on understanding the bankruptcy process.