July 8 (Bloomberg) -- Michael Vick declared bankruptcy from a federal prison cell, the latest setback for the suspended National Football League quarterback who set salary and rushing records before being caught running a dogfighting ring.

Vick cited debt of $10 million to $50 million in Chapter 11 papers filed yesterday in U.S. Bankruptcy Court in Newport News, Virginia. He listed assets valued in the same range.

After Vick was indicted on a federal conspiracy charge last year, the NFL suspended him without pay. Sponsors including Nike Inc. dropped him and creditors began calling in his debts. He now joins other sports stars such as former heavyweight boxing champions Mike Tyson and Riddick Bowe in seeking bankruptcy protection.

Vick's lawyers said in the filing that they hope he ``can, after the conclusion of the bankruptcy case, rebuild his life on a personal and spiritual level, resurrect his image as a public figure, and resolve matters with the NFL such that he can resume his career.''

Vick, 28, was selected by the Atlanta Falcons with the first pick in the NFL's 2001 draft and signed a record six-year, $62 million rookie contract, including a $3 million signing bonus.

About two months later, Vick purchased a property in Smithfield, Virginia, for about $34,000 that became home to ``Bad Newz Kennels,'' court papers said. The operation bought and raised pit bulls and engaged in fights both on the property and in other states, with purses ranging from hundreds to thousands of dollars.

Video Game

Both his football and dogfighting careers continued for several years. Vick earned three Pro Bowl selections and appeared on the cover of Electronic Arts Inc.'s ``Madden 2004'' edition of the best-selling sports game in history. His No. 7 jersey ranked as high as second in the league for sales.

In 2004, Vick signed a 10-year, $130 million contract extension, making him the league's highest-paid player. In 2006, Vick became the first quarterback in history to run for more than 1,000 yards in a season.

That was before Vick's July 2007 indictment for conspiracy to travel in interstate commerce in aid of unlawful activities and to sponsor a dog in an animal-fighting venture. Court papers described a gambling operation with purses as high as $26,000, where dogs killed or maimed each other in the ring. Losing dogs that survived, or those unsuitable for fighting, were sometimes killed by drowning, hanging, shooting or electrocution.

Sponsors Dropped

Within weeks, Nike and Reebok International suspended sales of Vick apparel, including jerseys and shoes, both citing ``disturbing'' allegations. Reebok pulled Vick's uniform shirt even though it didn't have an individual endorsement or sponsorship agreement with him.

The NFL suspended Vick without pay in August 2007, after he agreed to a plea deal. In December, U.S. District Court Judge Henry Hudson sentenced him to 23 months in prison, less than half the maximum five-year penalty. He is due to be released from the U.S. penitentiary in Leavenworth, Kansas, in about a year, according to court papers.

The Falcons are owed $3.75 million for a ``pro rated signing bonus,'' according to the filing. Other large unsecured creditors listed include Joel Enterprises Inc., a sports agency owed $4.5 million for breach of contract, and Royal Bank of Canada, owed $2.5 million for a real-estate loan.

Largest Creditors

The former quarterback filed for bankruptcy after failing to ``work out consensual resolutions with each of his creditors,'' according to court papers. The seven largest creditors listed in the court papers are owed a total of about $12.8 million.

Chapter 11 allows debtors to reorganize debts through agreements with creditors and is typically used by affluent individuals and companies to resolve claims.

Vick asked the court to approve the appointment of David Talbot as his ``designated responsible person'' to care for his financial affairs, as he has limited ability to manage his finances and attend bankruptcy-court hearings.

The case is In re Michael D. Vick, 08-50775, U.S. Bankruptcy Court, Eastern District of Virginia (Newport News).

To contact the reporter on this story: Dawn McCarty in Wilmington, Delaware, at dmccarty@bloomberg.net; Aaron Kuriloff in New York at akuriloff@bloomberg.net.

Last Updated: July 8, 2008 12:38 EDT