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Young Buck files for personal bankruptcy

Rapper Young Buck, popular among the Washington, D.C., music crowd, is concluding his personal bankruptcy proceedings from prison. The man is serving a term for gun possession, according to media reports. The trustee in the case has filed a comprehensive payback plan, which ultimately raised nearly $400,000 to pay off the man's creditors. Most of the creditors are not being paid back in full for the debts, while some will not receive any money.

Tax debt was ultimately to blame for the man's financial insolvency, according to financial experts. The IRS, one of the highest-ranked creditors in any bankruptcy suit, will receive more than $42,000 for unpaid income taxes. Other government agencies with interest in the bankruptcy proceedings include the New York state tax department and Davidson County Criminal Court, which will also receive about 87 percent of the overdue money.

Those paid in full include the bankruptcy trustee herself, along with federal bankruptcy overseers and the Child Support Services of Tennessee. In general, unsecured creditors are unlikely to recover much from the man's assets, however. Those unsecured creditors can only receive money if the principal lenders are paid in full, which appears unlikely. Among that group are Hendersonville Medical Center, various utilities, auto lenders and additional smaller tax claims.

Reports show that much of the money used to pay creditors will come from the rapper's performance royalties and writing royalties, along with a small amount garnered from "personal services." The rapper appears to be continuing to write songs during his 18-month prison term.

If you are facing uncertain financial times because of personal bankruptcy, consider consulting a qualified bankruptcy attorney. These professionals can help you decide whether to file for Chapter 7 or Chapter 13 bankruptcy. Further, they can protect your rights and interests after the intervention of a bankruptcy trustee.

Source:  blogs.wsj.com, "Young Buck's bankruptcy rap sheet" Jacqueline Palank, May. 09, 2013

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