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Monday
Jul132009

Len Dykstra Bankruptcy Attorney Walter Hackett

Dykstra's attorney, Walter Hackett, says this is a classic example of "predatory lending."

(Reuters) Lenny Dykstra, the former star center fielder for the New York Mets and Philadelphia Phillies Major League Baseball teams, has filed for Chapter 11 bankruptcy protection.

The 46-year-old has no more than $50,000 of assets and between $10 million and $50 million of liabilities, according to a petition filed Tuesday with the U.S. Bankruptcy Court in the Central District of California.

Dykstra's filing comes in the wake of more than 20 lawsuits he faces tied to his activities as a financial entrepreneur, including The Players Club, a glossy magazine for athletes he had helped launch in 2008.

According to an April article on ESPN.com, Dykstra put his net worth at $60 million, and also owned a black Rolls Royce Phantom and Gulfstream II jet.

Known as "Nails" and "The Dude," Dykstra played for 12 years with the Mets and the Phillies before retiring in 1996 with a lifetime .285 batting average, 81 home runs, 404 runs batted in, and 285 stolen bases.

He helped the Mets win the World Series in 1986, and as a Phillie was the National League runner-up to Barry Bonds in the Most Valuable Player voting in 1993. The Phillies lost the World Series that year.

Walter Hackett, a lawyer for Dykstra, said the event triggering the bankruptcy filing was a planned foreclosure sale of a southern California residence that Dykstra bought from hockey legend Wayne Gretzky for $17.5 million in 2007.

Dykstra is "in good spirits," Hackett said in an interview. "He understands now that bankruptcy is truly a protective act. I do expect that Lenny is going to emerge from Chapter 11, and make those people whole who have legitimate claims."

According to the bankruptcy petition, Dykstra's largest unsecured creditors include units of JPMorgan Chase & Co, owed $12.9 million, and Bank of America Corp, owed a combined $4.2 million.

Hackett said Washington Mutual, now part of JPMorgan, was the main lender on the 2007 home purchase, and that the bank misled Dykstra about his ability to afford the property. The lawyer said the bank deserves nothing on its claim.

JPMorgan spokesman Tom Kelly said: "We don't comment on individual cases, but we expect our customers to repay their legal obligations under their mortgages when possible."

The bankruptcy case is In re Lenny Kyle Dykstra, U.S. Bankruptcy Court for the Central District of California (San Fernando Valley), No. 09-18409.

 

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    Irv Cantor has spent his entire 31 year career dedicated to those clients who have suffered serious injuries. He has successfully tried to verdict or settled over 1500 plaintiff’ s injury or death cases, including over 350 traumatic brain injury cases. In addition to receiving many accolades, he has served as ...
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Reader Comments (8)

Well many more famous personalities are filing bankruptcy for protection. Thanks for introducing Lenny. I have also filed chap 7 using online service from DIY4LAW.
October 19, 2009 | Unregistered CommenterBob
Yes many famous personalities are filing bankruptcy for their own protection. Based on my experience, before you file for bankruptcy, there are some important initial considerations which may affect your ultimate decision on filing, and the form of bankruptcy you choose. Important initial considerations include whether or not your debts are dis-chargeable in bankruptcy, whether you want to keep part or all of your debt, the relative costs and benefits of bankruptcy, your financial future after bankruptcy, the possible effect on your employment and prospective employment, and how your credit record may affect your ability to rent or purchase a residence in the event that you move.

Due to the nature of personal bankruptcy, most lawyers who accept bankruptcy cases do so on a volume basis. For simple bankruptcies, the lawyer may charge a fixed fee for the entire case. These fees are subject to review for reasonableness as part of the bankruptcy process, providing you with some protection from concerns about being charged an excessive fee.

When you are looking for a bankruptcy lawyer, you will typically benefit from hiring a lawyer who handles a lot of bankruptcy cases, and has good systems in place for processing bankruptcy forms and filings. If you are able, you may wish to seek a referral to a bankruptcy attorney from a lawyer you know and trust. If not, this is a category of lawyer that is often easiest to find through your local Yellow Pages or in West, Hurley Malikiewicz Cincinnati Bankruptcy lawyer.
November 5, 2010 | Unregistered CommenterFitzgerald Q. McAuliffe
Thank you for another essential article. Where else could anyone get that kind of information in such a complete way of writing? I have a presentation incoming week, and I am on the lookout for such information.
November 30, 2010 | Unregistered CommenterIndonesian legal Services
Having handled a lot of bankruptcy cases in my years of practice, I have met a lot of varying cases, each one unique in a sense. Filing for bankruptcy can take so long and is costly as well. When you have to file for bankruptcy, make sure you have a competent and reliable bankruptcy attorney to handle the preparation of necessary documents as well as the complicated procedures that will come about.
December 3, 2010 | Unregistered Commenterdivorce lawyer Texas
I really appreciate the person who has written such a wonderful blog. Your simple use of language and no frills makes the post a great read.Keep up the good work. Very good post, highly appreciated. Hope to see some more of your stuffs.
December 29, 2010 | Unregistered Commenterali
Irv Cantor has spent his entire 31 year career dedicated to those clients who have suffered serious injuries. He has successfully tried to verdict or settled over 1500 plaintiff’ s injury or death cases, including over 350 traumatic brain injury cases. In addition to receiving many accolades, he has served as ...
February 13, 2011 | Unregistered CommenterCredit Repair
Seems incredible that there could be such a mismatch between his assets and his liabilities. Surely this cannot be something that has occured in the short term. Maybe something should have been done sooner by his creditors in an attempt to stave off such a dire situation.
February 23, 2011 | Unregistered CommenterFamily Solicitors Leeds
Thank you for the post. I was a fan of Dykstra when he and Dale Murphy were playing together on the Phillies. Sorry to hear he's struggling with bankruptcy, but it sounds like he has a competent bankruptcy attorney.
http://prodefenders.com
March 11, 2011 | Unregistered CommenterHunter Thompson

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