“…You can’t get a dolla outta me!” 50 Cent

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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.

Stay tuned.

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About Jason

My name is Jason Richards, and I am an attorney in Northern Utah. I run my own practice and have offices in Ogden and North Salt Lake. I grew up in Ogden and attended local public schools. I graduated from the University of Utah Law School with a juris doctorate degree. My practice primarily centralizes on bankruptcy and debt collection. I also specialize in criminal defense and other areas of civil litigation. I represent clients who are suffering from crushing debt that seems hopeless. I have helped many people file for relief under Chapter 7 and Chapter 13 of the United States Bankruptcy Code. I have also helped dozens of clients renegotiate their debt and defend them in debt collection actions with ruthless creditors. If not dealt with promptly and aggressively, creditors will achieve their goal to collect. Bankruptcy is certainly not the solution for everyone. Everybody's situation is different. The best way for you to determine if it is right for you is by consulting with a local bankruptcy attorney. Bankruptcy has helped millions of Americans receive a fresh start and financial independence.
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