We've said it in this blog before, but it bears repeating, that no one is immune from financial difficulties. As an example, there was recent news that retired pro football punter Ray Guy is choosing to auction off his three Super Bowl rings to help him pay his debts. Guy recently filed for Chapter 13 bankruptcy protection.

Guy's move to auction the rings from the 1976, 1980 and 1983 Super Bowls is a somewhat unusual one. The reason it is unusual is that Guy filed for Chapter 13 bankruptcy. In many cases, a prime motivation for filing under Chapter 13 is that it allows the debtor to keep their assets. Many people who would like to file for Chapter 7, sell their non-exempt property and have remaining debts discharged, instead opt for Chapter 13 because they have particularly valuable or prized assets that they want to keep. Super Bowl rings would usually be the type of personal asset that a debtor would try to protect.

So why do people choose Chapter 7 if they can choose Chapter 13 and keep their assets? Cincinnati Chapter 13 bankruptcy attorneys point out that under Chapter 13, even though the debtor keeps their assets, they also keep most of their debts. Under Chapter 13, the debtor makes a payment plan to pay off their debts. They may have some debts discharged eventually, but for the most part the Chapter 13 debtor pays down their debts.

Ray Guy filed under Chapter 13, but is opting to sell his rings, valued at between $75,000 and $90,000. The money gained from the sale will obviously help him pay down his debts. Mr. Guy may feel that this would be a big win, one worth sacrificing some of the mementos of previous big wins.

Source: Bloomberg "Ex-Raiders Punter Guy Auctions Super Bowl Rings After Bankruptcy" Aug. 2, 2011