Rapper, actor and businessman 50 Cent is the latest in a long line of celebrities to feature in the news for filing for bankruptcy.
Unlike many individuals who usually file for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy, 50 Cent has filed for Chapter 11 Bankruptcy protection. Chapter 11 is often used by large businesses to reorganize debts.
Chapter 11 bankruptcy is extremely complicated, and for most people, Chapter 7 or Chapter 13 bankruptcy is appropriate. For those people who cannot get the debt relief they need under Chapter 7 or Chapter 13, Chapter 11 might be the best option.
According to the court hearing, 50 Cent says his expenses are over $100,000 per month, which include paying for gardening, a stylist, a personal trainer and the upkeep of his home. His vehicles are said to be worth over $500,000.
His rags to riches story and lifestyle has been well documented.
After being found guilty of releasing a private video as revenge which cost him $5m, and a judge finding his G-Unit brand guilty of copying a rival’s headphone design, to the tune of $17m, it’s easy to see how easy it is to lose a lot of money quickly.
Several of 50 Cent’s recent social media posts, especially one showing him surrounded by stacks of money spelling out the word ‘BROKE’, haven’t gone down well with his creditors. He has claimed that the money was fake, which makes the picture even more bizarre.
However, 50 Cent’s situation seems to be far from clear, as reports in the media claim that investigations into his financial and business affairs suggest he has $64 million in assets, which would cover his debts.
Although best known as a rapper with a successful music career, he has also made several acting appearances too. Perhaps surprisingly, it is 50 Cent’s impressive business mind that has helped to earn him a huge amount of money.
His successful investments span a wide range of industries, from music to health drinks, boxing promotion to vodka, and real estate to consumer electronics. He pocketed an estimated $100m after Coca Cola bought Glacéau, the company behind Vitamin Water, the enhanced water drink he had invested in.
If someone with the business acumen of 50 Cent can file for bankruptcy, perhaps it’s not surprising that people with far less money and far smaller budgets struggle to make ends meet, and need to use their credit cards or dip into their savings to pay the bills each month.
If you need bankruptcy advice, or want to learn whether Chapter 7 Bankruptcy or Chapter 13 Bankruptcy is right for you, then why not fill out out free Bankruptcy Evaluation Form or Contact Us at 612.824.4357 today and tell us how we can help you?
