Many residents of Rockland County may assume that all popular musicians are rich and that none of them comes close to needing bankruptcy protection. However, the recent bankruptcy filing of female rapper "Da Brat" belies this myth and provides a peek into the finances of an otherwise successful musician.
According to court documents obtained by a music publication, the rapper owes a total of $7,782,249.57, but has assets totaling only $108,700.65, leaving her $7,674,548.92 in the hole. The largest debt is a judgment for $6.4 million owed to a woman who successfully sued Da Brat for assault after Da Brat hit her with a bottle in a nightclub. Da Brat also owes $1,255,128 to Sony Music, $12,000 to Ally Bank, $2,284 in credit card debt and $2,294 to the Georgia Department of Revenue. She also owes an undetermined amount to the Internal Revenue Service.
Da Brat's assets include a Mercedes Benz, a BMW and a Jeep Wrangler. Personal assets include furniture and household goods worth $8,000, home electronics worth $3,000, $20,000 in clothing, two necklaces worth $15,000 and various royalty agreements with an unknown value. The woman earns an average of $9,319 per month, but her monthly expenses come to $10,506, leaving her with a monthly deficit of $1,187. Da Brat's income may prevent her from passing New York's means test for Chapter 7.
This bankruptcy filing demonstrates how even an individual with a significant monthly income can accumulate a financial burden that becomes insurmountable. A knowledgeable bankruptcy lawyer can offer assistance in finding ways to block the collection attempts of creditors and in drafting a plan that will provide breathing space for paying the debts and recovering financial health.