Kansas City Chiefs WR Rashee Rice files for bankruptcy facing $3M in debt

Kansas City Chiefs wide receiver Rashee Rice has filed for bankruptcy as he deals with the financial fallout from a 2024 crash in Dallas.

Rice is facing multiple lawsuits seeking damages from a six-car pileup. Police say Rice was driving more than 100 mph before the crash on Highway 75.

Why did Rashee Rice file for Chapter 7 Bankruptcy?

What we know:

Rice filed for Chapter 7 bankruptcy on Wednesday amid multiple ongoing lawsuits connected to his role in a March 2024 street-racing crash in Dallas.

An attorney not involved in the case said it remains unclear whether Rice will qualify for Chapter 7 bankruptcy. According to the bankruptcy filing, Rice has more than $3 million in debt. A significant portion of that debt is connected to pending civil litigation.

Multiple victims from the six-car pileup have filed lawsuits seeking damages. The filings also show that a portion of Rice’s wages is already being garnished to pay some victims.

However, because Rice filed what is called a "suggestion of bankruptcy," the pending litigation is essentially put on pause.

What they're saying:

Donald Hood, a bankruptcy attorney who is not involved in the case, said creditors may request what is known as a 2004 examination of the debtor.

"The only other way that he could qualify for a Chapter 7 is if a debtor could establish that 51% or more of his total debt is business-related," said Hood.

Hood said filing for bankruptcy could be a strategy to avoid paying the full amount of the damages, but victims could still receive money after Rice’s assets are liquidated.

"Something, but probably nowhere approximating the amount of their claims," Hood said when asked how much victims could potentially recover.

Rice faces more than $3 million in debt

Dig deeper:

Rice is in the final year of his rookie contract and is expected to make at least $1.5 million this year. His income could increase significantly if he is re-signed, which may affect his eligibility for Chapter 7 bankruptcy.

Rice’s assets listed in the filing include a Mercedes-Benz, NFL jerseys and hats.

He also pledged his Super Bowl 58 ring, valued at $160,000, as collateral for his attorney.

Rice pleaded guilty in crash case

The backstory:

Rice pleaded guilty to two third-degree felony charges connected to the crash. He was sentenced to five years of probation, 30 days in jail and ordered to pay $115,000 in victim restitution.

He was also suspended for six games by the NFL.

Attorneys representing the victims have not yet provided a statement or comment. Rice’s attorney also has not responded to requests for comment.

A creditors meeting is scheduled for Dec. 11.

The Source: Information in this article was provided by FOX 4's Amelia Jones.