Rapper 50 Cent filed a Chapter 11 bankruptcy last July, but this past weekend he took to Instagram to show off video of his new house in Africa.
50 Cent Files for Bankruptcy
50 Cent, whose real name is Curtis Jackson III, 40, filed for Chapter 11 bankruptcy protection July 13, 2015. Under Chapter 11, a debtor restructures his or her finances through a plan of reorganization. While Chapter 11 is usually filed by businesses, if a debtor’s assets are worth more than a certain amount they can choose to file for Chapter 11.
But how is it possible that someone can file for Chapter 11 and still buy a home?
It seems the answer lies in why 50 Cent filed for Chapter 11. And why was that? He was ordered to pay a woman $5 million for damages.
An automatic stay is a motion that protects debtors from all people that are seeking money, including damages. An automatic stay can be a great form of protection for those who are facing paying large settlement payments. Automatic stays are also initiated when you file for bankruptcy.
Following the filing, 50’s attorney William A. Brewer III made this statement: “Mr. Jackson’s business interests will continue unaffected in the ordinary course during the pendency of the Chapter 11 case. This filing for personal bankruptcy protection permits Mr. Jackson to continue his involvement with various business interests and continue his work as an entertainer.”
The fact that the rapper purchased a new home in Africa seems to prove that the Chapter 11 filing was only meant to stop the payment of the settlement pay out. As 50 told E! News last July, he took necessary actions that any “good businessperson” would take had they been in the same situation.
“You know when you’re successful and stuff, you become a target. I don’t wanna be a bull’s-eye,” he said. “I don’t want anybody to pick me as the guy that they just come to with astronomical claims and go through all that.”
Working with a Bankruptcy Attorney
Bankruptcy can be an overwhelming process. That’s why we advise that you work with a phoenix business bankruptcy lawyer that is familiar with various debt repayment options. We are committed to helping our clients understand their rights and options under the bankruptcy law and developing the debt relief solution that makes the most sense for each individual. We invite you to call (602) 648-3274 or contact our Arizona office to schedule a free initial consultation.
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