William Jefferson, the former U.S. congressman from Louisiana who was convicted of corruption after federal agents found $90,000 in his freezer, has filed for bankruptcy. A chapter 7 liquidation petition filed last week by Jefferson and his wife, Andrea, reveals that the couple owes between $1 million and $10 million to about 50 creditors. The petition also lists their estimated assets as being worth between $10 and $50 million. When someone files for chapter 7 bankruptcy liquidation, their assets are sold and the cash goes to creditors. Some property may be exempt from sale. In early August, Jefferson was convicted of peddling his congressional influence to land his wife and children lucrative contracts in Africa. In addition to guilty verdicts for bribery, racketeering, and money laundering, the jury ruled that Jefferson, who was a member of the Congressional Black Caucus and several key congressional committees, must relinquish about $470,000 in bribery receipts. When he was elected nearly two decades ago, Jefferson became the first Black congressman from Louisiana since Reconstruction. In 2005, the FBI raided his Capitol Hill home and found the $90,000 in bribe money wrapped in foil and stashed in frozen-food boxes. Prosecutors told jurors that the money was to secure the vice president of Nigeria’s help with a telecommunications venture.

Ex-NFL superstar Michael Vick will have to re-work his plan to emerge from bankruptcy following his suspension from football and loss of millions in endorsements. More here.

Atlanta Falcons quarterback Michael Vick has big plans after prison. Among them is a triumphant return to the NFL, where he will rake in at least $10 million a year. This sum, according to papers he filed with bankruptcy court, would allow him to pocket $750,000 over the next five years while paying off his creditors, based on a sliding scale, The Atlanta Journal-Constitution reports. Read the rest.

 After finding no takers on the $6.2 million price tag he set for his Malibu mansion last year, Marion “Suge” Knight watched it sold at a recent bankruptcy auction. The seven-bedroom, nine-and-a-half-bathroom, ocean-view crib went for a measly $4.5 million in a year of bad news for the ex-Death Row Records president. Knight was publicly knocked unconscious in a street fight this past spring and still faces criminal charges for allegedly attacking his girlfriend in Las Vegas. A judge ordered a bankruptcy takeover of Death Row due to mismanagement after Knight filed for protection over the label two years ago. Global Music Group bought Death Row for $24 million.

Who’s best able to fix the economy? Sen. Barack Obama says that Republican John McCain will follow the same failed policies that has resulted in the Lehman Brothers debacle, calling it the most serious economic crisis since the Great Depression. Get more at Pamela on Politics.

Michael Vick Claims Up To $50 Million In Debt

Imprisoned ex-NFL star Michael Vick has filed for Chapter 11 bankruptcy protection, claiming he owes between $10 million and $50 million to creditors. The former Atlanta Falcons quarterback, who admitted to funding an illegal dog-fighting ring and is serving federal time in Kansas, “will seek to rebuild his life and career,” court papers state. Vick was suspended from the NFL in light of his confession last year and lost numerous product endorsement deals. He still faces charges in Virginia as he serves a 23-month sentence at the Leavenworth pen. Vick has been named in multiple lawsuits, including alleged loan default.