Chiefs receiver Rashee Rice files for Chapter 7 bankruptcy over $3 million in debt

Kansas City Chiefs wide receiver Rashee Rice filed for Chapter 7 bankruptcy on Wednesday, seeking court protection from more than $3 million in debt. The petition was submitted amid multiple civil lawsuits stemming from a six-car pileup on Highway 75 in Dallas in March 2024. Police reported that Rice was traveling at more than 100 mph before the collision.

The filing lists assets including a Mercedes-Benz, NFL jerseys, hats, and a Super Bowl 58 ring valued at $160,000. That ring is pledged as collateral for Rice’s attorney. Rice is in the final year of his rookie contract, with expected earnings of at least $1.5 million this season. His income could rise if he is re-signed, a factor that may influence his bankruptcy eligibility.

Donald Hood, a bankruptcy attorney not involved in the case, noted that it remains unclear if Rice qualifies for Chapter 7 protection. Hood explained that the debtor might qualify if he establishes that at least 51% of his total debt is business-related. Otherwise, creditors could request a 2004 examination of the debtor’s finances.

Hood described the bankruptcy filing as a potential strategy to limit payments on damages. While victims could still receive funds after Rice’s assets are liquidated, Hood said the amount would likely be far less than the total claims. A portion of Rice’s wages is already being garnished to pay some victims, according to the court documents.

Rice previously pleaded guilty to two third-degree felony charges related to the crash. He was sentenced to five years of probation, 30 days in jail, and ordered to pay $115,000 in victim restitution. The NFL suspended him for six games following the incident.

Attorneys representing the victims and Rice’s legal team have not provided statements. A meeting of creditors is scheduled for December 11, where the bankruptcy petition will be reviewed.