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Famous rapper files for personal bankruptcy

When people in Washington, D.C., find that they owe more money than they can pay back, they have the ability to start over again through bankruptcy. In personal bankruptcy, people can choose to file Chapter 7 and essentially sell off assets in order to pay their debt. The other option is Chapter 13, which allows people to keep their assets but restructure their debt so that it is manageable again. In order to be granted bankruptcy status, people must show their debts and assets.

This recently occurred when rapper, 50 Cent, filed for bankruptcy. He has claimed that he owes over $32 million in debt for things like business ventures, expensive vehicles, child support, monthly expenses and his home. The home itself has been valued at $8.25 million, but the papers filed in court indicate that there is an unpaid loan of only around $1 million on the property.

The rapper, who has told a court recently that a lot of his personal apparel was borrowed, has not provided any financial assessment of household items within his homes, jewelry, furs, clothing and collectibles. In addition, he claims two recent court judgments against him for $7 million and $18.4 million were the main cause of his bankruptcy filing. In comparison, he states that he has almost $25 million in assets.

Once a person’s financial information is submitted to the court, it will be up to the judge whether the person will be granted the bankruptcy. Bankruptcy can be confusing and complicated. Therefore, it may be wise to meet with an experienced attorney for counsel.

Source: The Wall Street Journal, “50 Cent Bankruptcy: By The Numbers,” Katy Stech, Aug. 4, 2015

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