Evander Holyfield – Getting Knocked Out with Debt and Tax Problems

Roseville, CA – Former heavyweight and cruiserweight Undisputed World Champion Evander Holyfield may have been able to dodge and endure all those hard pounding punches, including the infamous ear-biting incident match with Mike Tyson while he was still active in boxing and still came out victorious.

Evander Holyfield – Getting Knocked Out with Debt and Tax ProblemsThe tides have changed and Holyfield is still in a battle of sorts but not inside the ring; currently he is fighting the fight of his life to remain standing and not get knocked out by all of his debts and legal problems.

Evander Holyfield’s Debt Ridden Timeline:

June 8, 2012 – Entertainment media news outlet, TMZ, reports that Holyfield’s Georgia mansion was just sold. The 54,000 sq. ft. 234 acres mansion fetched for $7.5 million. It would have been a nice chunk of change except that the sale was done on an auction block. Evander’s property was foreclosed by the bank and the bad news is, the total amount of mortgage owned on the mansion amounts to $14,000,000 and he still owes almost half of that amount after the foreclosure and auction of his property. Additional bad news is that apart from the difference of the short sale, there is also the issue of more than $2,500 worth of foreclosure fees. That is more or less the tip of the iceberg because part of the proceeds from the auction sale is going to go to the IRS since Holyfield also owes Uncle Sam $200,000 worth of back taxes.

Not fully aware on how the foreclosure system works in Georgia but in California which is known as a title theory state, the owner does not hold the title of the property unless fully paid on the mortgage, instead, a trustee holds the deed of trust. Most common type of foreclosure is the “non-judicial foreclosure” and before anyone can foreclose on your property, you must be served a Notice of Default 3 months prior to the foreclosure proceeding.

Strange that he did not petition for bankruptcy, either Chapter 7 or Chapter 13. He would at least have sought the protection of bankruptcy which will impose an automatic stay against his creditors.

June 2, 2012 – Evander has been sued by the GA Department of Human Services who represent his 18-year old daughter Emani Holyfield. The DHS is petitioning the court to garnish Holyfield’s wages and jail time if he fails to cough up a whopping $372,097.40 in back child support payments.

For 18 years, he had failed to pay a single cent in child support. If he was in California, the CA Department of Child Support Services would have suspended his driver’s license and also garnished his wages.

During his active career in boxing, Holyfield was making tons of money per fight. The lowest salary he received per bout was $600,000 and on top of that, athletes usually receive additional money from endorsements. Too bad for Holyfield that he failed to invest his money wisely while he skipped on paying his taxes and child support.

The bad thing is that even if he declares bankruptcy now, he can never really skip on back taxes and back child support, they are considered priority debts. The mortgage can be discharged in bankruptcy.

The biggest mistake that celebrities make is that when they are at the top of their game, they fail to save up for a rainy day, when the offers come down to a trickle, when they are no longer physically able to do the things they did when they were younger. As for Holyfield, he might end up getting knocked out from all the debt and he goes down for the count 1, 2, 3 ….

 

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