[h=2]Bankruptcy filing[/h] On January 15, 2008, Nifong filed for
bankruptcy under
Chapter 7 of the Bankruptcy Code.[SUP]
[89][/SUP] He listed assets of almost $244,000 and liabilities of over $180.3 million, virtually all of which being six $30 million "unsecured nonpriority claims," one for each of the six members of the 2005–2006 Duke lacrosse team suing Nifong, among others. While the bankruptcy filing automatically delayed the civil suit against him, it may not protect Nifong from civil liability for his actions in the case. Unsecured creditors can still pursue claims against someone filing for bankruptcy if the debt was incurred through "willful and malicious injury" to them.[SUP]
[90][/SUP] Seligmann's attorney, noted
Triangle lawyer
David Rudolf, said that the players intend to pursue such a claim.[SUP]
[91][/SUP]
According to at least one bankruptcy law expert, Nifong's bankruptcy filing is a tacit admission that he does not have the resources to defend himself against the players' civil suit, and is trying to protect what assets he is allowed to protect under the law.[SUP]
[92][/SUP]
On March 11, 2008, the Bankruptcy Administrator recommended that Nifong's chapter 7 bankruptcy case be dismissed or converted to a
chapter 13 bankruptcy case because Nifong earned income above the requirement set forth in the
means test to be eligible to file a chapter 7 bankruptcy case.[SUP]
[93][/SUP] However, the Bankruptcy Court ultimately held that Nifong was eligible to be a debtor in a chapter 7 bankruptcy case and granted him a
bankruptcy discharge on June 4, 2008.
Judge William Stocks lifted the
automatic stay imposed by Nifong's bankruptcy filing, and announced that the plaintiffs can pursue their lawsuit.[SUP]
[94][/SUP]