50 Cent is Insolvent, Not Broke

by San Antonio Attorney

For a man who was recently proclaimed as one of the wealthiest hip-hop artists, 50 Cent’s move to file for bankruptcy protection is puzzling.

It is uncommon for individuals to seek bankruptcy protection under Chapter 11. It is a measure normally utilized by corporations that requires restructuring. Although such option is also available to people looking to sort out their debts, it is very costly. For Curtis James Jackson III, Chapter 11 may give him an extension to pay his obligations and buy him some time to work out a more affordable payment plan, an option he might not outside of Chapter 11.

Based on available information, 50 Cent does not seem like a celebrity who does not have money. In his filing, his assets and liabilities are within the range of $10 million to $50 million.

Therefore, the famous rapper is not exactly broke. But the goal could be to secure his business interests as he sorts out his financial obligations. The bankruptcy case was also file just a few days after a Manhattan jury ordered Jackson to pay $5 million in damages over a years-long privacy lawsuit filed by Lastonia Leviston against him.

Those who file Chapter 11 are mostly insolvent, but not broke. Because the veteran rapper has debts exceeding $10 million, he cannot file for Chapter 13 bankruptcy, an option typically available to individuals seeking to reorganize their debt. The limitations are set at approximately $1.1 million for secured debt and $383,000 for unsecured debt.

Chapter 11 bankruptcy wouldn’t consequently remove the debt. But the corporations he is involved in will not be affected by the Chapter 11 filing.

By filing for bankruptcy, 50 Cent could possibly have his personal finances and assets reviewed in court. The rapper has listed his Farmington, Conn., 52-bedroom mega-mansion in his bankruptcy filing. It has nine kitchens, a tennis court, basketball court, a night club and a home theater.

If you need help in temporarily holding creditors at bay while you sort out your finances, a San Antonio Attorney can help you determine if bankruptcy is the right option for you.

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