Jan. 15 (Bloomberg) -- Michael Nifong, the ex-North Carolina prosecutor who lost his law license for mishandling rape charges against three Duke University lacrosse players, filed for bankruptcy and listed the students among his major creditors.

Nifong reported debt of $180.3 million and assets of $243,898 in documents filed today in U.S. Bankruptcy Court in Durham, North Carolina. He resigned from his post as Durham County District Attorney in July after being accused of withholding evidence in the rape case.

Three Duke lacrosse players were indicted after a Durham woman alleged she was raped at a March 2006 team party. The charges were later dropped, and the young men sued Nifong for prosecutorial misconduct. Collin Finnerty, David F. Evans and Reade Seligmann are listed as unsecured creditors, each owed $30 million, in Nifong's bankruptcy filing. Three other current and former players who sued Nifong are also listed as creditors.

``This looks like a smart move for Mr. Nifong,'' said Charles Tatelbaum, a Florida lawyer who has represented doctors who filed for bankruptcy to shield themselves from lawsuits. ``This stops all the cases against him so he doesn't have to pay legal fees if he doesn't have insurance.''

If a bankruptcy judge decides that Nifong's conduct in pressing the criminal case amounted to wrongdoing, any damages awarded in connection with the players' civil suits wouldn't be erased, lawyers say.

`Maliciousness'

``That's where the young men will focus their attack on this move,'' Tatelbaum said. ``They'll argue his mishandling of their prosecution was motivated by maliciousness and willfulness.''

That won't be easy to prove, said Evan Flascher, a New York- based bankruptcy lawyer. ``It's a tough standard. Malicious means without just cause. If Nifong knew that his accusations were false when he made them, then there is a reasonable argument that claims against him should not be discharged.''

Brendan Sullivan and Richard Emery, the lawyers for the three players who were indicted and later cleared, didn't immediately return calls seeking comment. Nifong's attorney, James B. Craven, also didn't immediately return a call.

Among the assets Nifong listed in his bankruptcy petition is a home in Durham, North Carolina, valued at $235,000 and a 2003 Honda Accord EX, valued at $8,398. Nifong's wife wasn't listed on the petition as a co-debtor.

The three players, all white, were indicted in April 2006 after Nifong concluded a monthlong investigation into the alleged assault on a 27-year-old black exotic dancer. Nifong was criticized for bringing the case without sufficient evidence and inflaming racial animus in Durham.

Unethical Behavior

State prosecutors took over the case in January 2007 at Nifong's request after he was accused of unethical behavior during the investigation. State officials later dropped the charges, and Nifong was disbarred.

Last month, three other current and former Duke lacrosse players, Ryan McFadyen, Matthew Wilson and Breck Archer, sued Nifong in federal court in Greensboro, accusing him of fraud and conspiracy for his handling of the case. The three athletes were among 46 Duke lacrosse players who provided DNA samples and were photographed during the rape investigation.

They accused Nifong of pressing the rape case to boost his re-election chances in a hotly contested Democratic primary.

Each of the current and former lacrosse players is listed with a claim of $30 million in a bankruptcy filing outlining Nifong's 20 largest unsecured creditors.

The case is: In re Michael B. Nifong, 08-80034, U.S. Bankruptcy Court, Middle District of North Carolina (Durham).

To contact the reporter on this story: Dawn McCarty in Wilmington, Delaware, at dmccarty@bloomberg.net.

Last Updated: January 15, 2008 18:23 EST