Although famous musicians, sports stars and other celebrities often earn significant incomes, the lifestyle that comes along with fame can lead to financial difficulties. In fact, news articles over the past years have reported that many celebrities have sought debt relief in order to satisfy creditors. Readers in Kentucky may be interested in a recent story that discusses the state of rapper 50 Cent's bankruptcy plan after he filed for Chapter 11 protection in 2015.
When he filed for bankruptcy last year, 50 Cent, whose real name is Curtis Jackson, cited assets of less than $20 million and debts of $36 million. Jackson filed the bankruptcy claim immediately on the heels of losing an invasion-of-privacy lawsuit. The lawsuit was filed by a woman who claimed that Jackson acquired and posted a pornographic video of her online without her permission.
The jury that heard the case granted the woman an award of $7 million, although the woman agreed to take $6 million in the settlement. According to the bankruptcy plan, Jackson is required to pay back his creditors, including the woman, and reorganize his finances. Jackson has also agreed to make an initial payment of $7.4 million in order to satisfy the bankruptcy plan.
Regardless of the amount income or assets a person has, there are circumstances that may require one to seek Chapter 11 or another form of bankruptcy protection. Most in Kentucky facing these issues seek the counsel of an experienced bankruptcy attorney. By consulting with an attorney, clients can evaluate various legal and financial options to ensure they find the best routes to financial freedom.
Source: theguardian.com, "50 Cent to make $7.4m payment to begin bankruptcy plan", July 7, 2016