A year after Curtis James Jackson III, better known as 50 Cent, filed for Chapter 11 bankruptcy, a judge has approved a reorganization plan that he and his attorneys worked out with his creditors. The rapper/businessman assured the judge that he understood his non-dischargeable obligations under the plan and that another bankruptcy is "not gonna happen."
Jackson filed for bankruptcy last year after he lost a lawsuit to a woman who claimed that he had posted a sex tape of her with another rapper on his website. He was ordered to pay her $7 million. He also had to pay an $18 million-plus arbitration award in connection with a failed headphone deal with Sleek Audio.
Under the reorganization plan, Sleek Audio has agreed to take $17.5 million and the woman who filed the privacy lawsuit has agreed to accept $6 million. He will also be paying close to $4 million to SunTrust Guaranty Co. for loans including the mortgage on his Connecticut mansion.
Jackson is selling the 17-acre property as well as other assets to help pay off his creditors. He bought the home from Mike Tyson in 2003. That was the year that Tyson filed for Chapter 11 bankruptcy.
Additional creditors have unsecured claims. They will receive anywhere from 74 to 92 percent of what Jackson owes them.
Despite his legal woes, Jackson's career appears to be going along nicely. His attorney reassured the court that his client was working on new projects and committed to repaying his creditors. The judge noted in approving the plan that the rapper "has a significant ability to generate income."
No matter how much money someone has, it's always possible to get into problems with debt. The key is to work with Pennsylvania legal and financial professionals who can help you resolve your debt issues and commit to a plan of action sooner rather than later.
Source: Hartford Courant, "Judge Approves 50 Cent's Bankruptcy Reorganization," David Owens, July 06, 2016