My favorite early 2000’s rapper 50 Cent is all over the news with his bankruptcy filing.
Here’s the short of it:
50 Cent, born Curtis Jackson III, posted a 13-minute sex tape of a woman named Lastonia Leviston in an attempt to taunt a rival rapper, Rick Ross. Read more here.
Not surprisingly, Leviston sued 50 Cent, alleging, among other things, a breach of her privacy. A NYC jury ordered 50 Cent to pay $7 Million to Leviston. 50’s response? File for bankruptcy.
50 Cent filed for Chapter 11 protection, which allows him to get his finances in order while he continues to operate his various business ventures.
CNBC analyzed 50’s bankruptcy filing and found a number of interesting disclosures:
Documents filed in Connecticut Bankruptcy Court showed Jackson claims total assets of $24.8 million and liabilities of more than $32.5 million, constituting a nearly $8 million shortfall for the rapper who was recently ordered to pay $7 million in damages to a woman who sued over a sex tape that was posted without her permission.
The filing also reveals a more detailed snapshot of Jackson’s finances, including the $5,000 the rapper spends monthly on gardening and his net monthly income of $76,000.
Jackson also revealed costs of over $12,000 a month in child support, and an average of $1,000 per month in personal grooming.
The rapper, who survived being shot point-blank nine times, also lists $9,000 a month in security and protection spending.
Jackson listed automobile assets of over $500,000, including a 1966 Chevrolet Coupe and a 2013 Suzuki Kizashi Sport. A previous filing revealed he leased a Bentley Mulsanne for more than $135,000.
Jackson’s brokerage accounts with Credit Suisse, Merrill Lynch, and Goldman Sachs totaled more than $7 million.
50 Cent has another bankruptcy hearing set toward the end of August.
The main problem I see with 50’s case, is that the unsecured class of creditors will have to sign off on his plan. If the entire unsecured creditors committee rejects his plan of reorganization, then its possible his case could be converted to a case under Chapter 7 and 50 could end up losing millions of dollars of assets.
Maybe Biggie Smalls was right. The more money you got- the more problems you get.