New Yorkers who plan on filing for bankruptcy may be interested in a publicized case involving rap artist Curtis Jackson, better known as 50 Cent. Jackson filed for bankruptcy in 2015 following a court’s order that he pay $7 million to a woman who had a disagreement with him over a sex tape, and as of early 2016, he was known to owe different creditors a total of approximately $30 million. Three of them sought to have an impartial third party take over the rapper’s money management until he satisfied the payment terms.
In February, it was revealed that Jackson had used the Instagram social media platform to post pictures of himself with large sums of money. In one image, he reputedly had stacks of cash in his refrigerator, and others apparently showed him laying in bed with cash bundles. Reports say that the woman he was ordered to pay drew light to the posts.
In response to the Instagram pictures, a bankruptcy judge ordered a special hearing so that Jackson could appear in court to explain his actions. While his lawyers claimed that the photos were filed with the court in an effort to tarnish the rapper’s reputation, representatives for his creditors said they called into question whether he had made proper disclosures of his holdings when he filed for Chapter 11 bankruptcy.
Filing for bankruptcy can provide some debt relief to those who are facing financial challenges . Bankruptcy filings are based on honest disclosures of assets, however, and both Chapter 11 and Chapter 13 require a plan that sets forth how creditors will be paid. In addition, there are eligibility requirements that an attorney can explain.