In exchange for the discharge, sources say Smith will have to sacrifice a small amount of assets, but the property loss pales in comparison to the remarkable amount of debt relief Smith secured in bankruptcy court. In his bankruptcy filing, which started while he was serving as Arkansas’s head football coach, Smith claimed to have $40.7 million in debt. But most of this was discharged during his case.
Smith’s bankruptcy filing was almost derailed by creditors who claimed that he restructured his contract with the university to keep money out of their pockets. Indeed, he had agreed that 70 percent of his pay be deferred to this winter. With the aid of his bankruptcy attorney, however, Smith defeated this argument and successfully completed his Chapter 7 bankruptcy case.