The rapper known as 50 Cent made headlines in New York and throughout the rest of the nation recently when he filed for bankruptcy. The artist alleged that he was broke and that he did not have sufficient money to satisfy all of his debts. However, due to the timing of his Chapter 11 bankruptcy petition, questions arose as to the veracity of his insolvency claims.
Primarily, the rapper’s bankruptcy filing came at the end of a year when he had two lawsuits adjudicated against him. In sum, 50 Cent may owe in excess of $25 million on those two judgments; a court recently added on an additional $2 million in damages to one victim who claimed that the rapper posted inappropriate video of her online.
Additionally, new evidence reportedly showed that 50 Cent gave a nearly $30 million loan to his musical production company in the year before the two judgments came down. It appears that the rapper did not include that outstanding loan on his documentation when he was filing for bankruptcy and the loan was only made known because attorneys for the parties that sued the artist brought the loan to light.
The timing of the bankruptcy petition along with evidence of a potentially concealed loan and the apparent fact that the rapper never fell behind on his monthly bills were used to demonstrate that the two large judgments were appropriate to make against 50 Cent. He will return to the state where he filed for bankruptcy in the near future to continue to advocate for his bankruptcy plan. As the matter plays out, it will be very interesting to see how the courts handle this matter of celebrity personal bankruptcy.
Source: BusinessInsider.com, “50 Cent is the Lehman Brothers of hip-hop,” Jonathan Mariano, July 25, 2015