No one is immune from financial troubles. Even the most successful individuals and businesses can face unexpected events that lead to financial problems that quickly become insurmountable without help. A prime example of this is the recent bankruptcy filing of the Major League Baseball team the L.A. Dodgers.

For reasons entirely unrelated to baseball, the team has had to seek Chapter 11 bankruptcy, which is, roughly speaking, the corporate version of Chapter 13 bankruptcy reorganization, in which an individual makes a reorganization plan under which they pay their debts under a payment plan. Some debts may be forgiven down the road as part of the reorganization.

The Dodgers' problems have been not so much a business failure by the ball club, but the strain of the divorce of owners Frank and Jamie McCourt. The McCourts' divorce has involved a huge power struggle over which spouse really owns the team, and which spouse is owed what under prior business agreements and under their divorce property settlement.

The storm of activity related to the divorce has drained money and energy away from the ball club, which also led to Major League Baseball taking over day-to-day operations of the team.

Some observers feel that Frank McCourt (who is succeeding at claiming ownership of the team) has filed for bankruptcy at least in part to regain some control of the business, either in the process of bankruptcy or once the team emerges from reorganization.

McCourt was furious that Commissioner of Baseball Bud Selig refused to approve a broadcast deal that would have been worth $3 billion to the club. Selig said the deal seemed to be more for McCourt's benefit than the Dodgers'. Soon after, McCourt decided to take the team into bankruptcy.

Cincinnati bankruptcy attorneys observe that despite all the financial troubles from the divorce, the McCourts are reportedly close to reaching a settlement. If the team is successful at reorganizing and emerges from bankruptcy, the organization could be better off getting a fresh start and moving forward on a stronger financial footing.

Source: MarketWatch "Los Angeles Dodgers file for bankruptcy" 6/27/2011