Posted 9/9/2013 12:00 am
You might have heard that former Arkansas Razorbacks football Coach John L. Smith has received a discharge from his $40.7 million Chapter 7 bankruptcy case.
But it’s still not clear how much Smith’s creditors will receive. The trustee in the case, John T. Lee of Siloam Springs, didn’t immediately return a call for comment. When Smith filed for bankruptcy protection in September 2012, he listed $1.3 million in assets.
As we told you last month, Smith reached a settlement with his creditors, needing only the OK from U.S. Bankruptcy Judge Ben Barry to move forward. Barry approved the settlement agreement and issued the discharge on Tuesday.
As part of the settlement agreement, Smith was allowed to discharge $12 million he owed to the creditors who sued to block the debts from being discharged.
He also has to pay $265,000 to settle the bankruptcy case.
Since Smith has a discharge order in hand, the collection of his discharged debts is now prohibited.
Smith, who was on an interim, 10-month contract with the UA football program last season, was scheduled to coach his first game on Sept. 7 for the Division 2 Fort Lewis College, a liberal arts college in Colorado.