Chiefs wide receiver Rashee Rice files Chapter 7 bankruptcy amid Dallas crash lawsuits

Kansas City Chiefs wide receiver Rashee Rice filed for Chapter 7 bankruptcy on Wednesday, a move that pauses multiple lawsuits stemming from a 2024 crash in Dallas. The filing lists more than $3 million in total debt, with a large portion attributed to ongoing civil litigation.

The legal process began after Rice was involved in a six-car pileup on Highway 75 in March 2024. Police reported that he was traveling at a speed exceeding 100 mph before the collision. Several victims from that accident have since filed lawsuits seeking financial damages.

Rice was previously sentenced for his role in the crash. He pleaded guilty to two third-degree felony charges. His sentence included five years of probation, 30 days in jail, and a restitution order for $115,000 to the victims. The NFL also suspended him for six games.

Bankruptcy attorney Donald Hood, who is not representing Rice, noted that the filing raises questions about eligibility. Chapter 7 bankruptcy is typically for liquidation, and it is unclear if Rice qualifies. Hood explained that Rice could qualify if he proves that at least 51% of his debt is business-related. Otherwise, creditors might request a 2004 examination of the debtor.

The filing reveals that Rice is currently in the final year of his rookie contract. He is projected to earn at least $1.5 million in salary this year. His assets include a Mercedes-Benz, NFL merchandise, and his Super Bowl 58 ring, which is valued at $160,000 and pledged as collateral for his legal fees.

Hood stated that the bankruptcy strategy may reduce the total amount paid to victims. While creditors could still receive funds after Rice’s assets are liquidated, the recovery amount is likely to be less than the original claims. Wage garnishments already in place to pay some victims are affected by the current legal status.

Rice’s attorney and the lawyers representing the victims have not yet responded to requests for comment. The next step in the bankruptcy process is a creditors meeting scheduled for December 11.