Hip hop music artist, 50 Cent, was recently praised by a judge outside California in connection with a debt alleviation and reorganization situation in which he is involved. Apparently, the rapper filed for Chapter 11 bankruptcy and had been awaiting a court approval. By choosing to file for bankruptcy of this type, an individual or company can obtain temporary protection from creditors while reorganizing finances.
Typically, the debtor filing for a Chapter 11 is able to retain possession of his or her assets. The judge in 50 Cent's case lauded his efforts to create a plan in which his creditors will be paid back in cash from his current assets. As the superstar, whose real name is Curtis James Jackson, earns more income, he will continue to pay back all his debts in the same manner.
Reportedly, Jackson's dire financial situation began after he was sued by a woman who had claimed he posted a sexual video of her online without her permission. A jury rendered a decision in her favor, and Jackson was ordered to pay $7 million in restitution. In addition to this personal situation, Jackson also seems to have suffered financially after a deal to produce headphones failed, and he was ordered to pay an arbitration award.
As the current bankruptcy plan unfolds, Jackson will pay more than $20 million to cover his debts. These payments will be drawn from his future income, current assets and the selling of a mansion he owns. Regardless of whether a person's lifestyle includes celebrity status or far more simple means, circumstances may arise that create the need to file for bankruptcy. An individual or company owner in California can obtain more information about the process involved by contacting an experienced bankruptcy attorney to discuss the issue.
Source: courant.com, "Judge Approves 50 Cent's Bankruptcy Reorganization", David Owens, July 6, 2016