By now, many people have heard of the rumors that recording artist and entrepreneur Curtis Jackson, better known as 50 cent has gone bankrupt. Many people believe that he has gone broke, this is not true. 50 cent is a very smart man and he would not have let himself go broke over night. To clarify these rumors, yes 50 cent filed for bankruptcy but he definitely did not go flat broke. Here is the story,
3 days prior to 50 cent filing for bankruptcy protection, he was ordered to pay $5 million to Lastonia Leviston (ex-girlfriend of recording artist Rick Ross) who sued him for releasing a sex tape of her online for the public to see.
As I said before, “50 cent is a smart man”. He did not file for chapter 7 bankruptcy, which means liquidation of assets or having to sell his business to pay back creditors. 50 Cent filed for chapter 11 bankruptcy which allows him to reorganize his financial affairs in order to pay back any debts. I believe this is beneficial for 50 cent because instead of having to pay $5 million in one shot, he now might have more time to pay his debt since he filed. In addition, he is now given a chance to come up with a payment plan, an option he probably would not have had if he did not file for Chapter 11.
According to the Wall Street Journal, 50 cent says in the bankruptcy filing his debts and assets are worth between $10 million and $50 million, so he is definitely not going broke, but this could also protect his businesses as he is dealing with problems and debt. I believe that if 50 cent could, he would have filed for chapter 13, which allows individuals to restructure their debt. According to Michael Venditto, an attorney and partner at Reed Smith, 50 cent does not qualify for chapter 13 since his debts exceed $10 million and limits are set at $383,000 for unsecured debt and $1.1 million for secured debt.
Sources:
http://www.businessinsider.com/50-cent-files-for-bankruptcy-2015-7