DMX files for bankruptcy protection
Florida music fans might be interested in learning that DMX has filed for bankruptcy protection in an effort to save his home from foreclosure. The rap star reportedly owes around $2 million in debt.
According to sources, the Chapter 13 bankruptcy petition filed by DMX is his third filing since 2009. The first bankruptcy case that he filed was dismissed by the court for what it termed as unreasonable delays. The court also threw out DMX’s second bankruptcy petition, stating that it doubted the veracity of the documents the star had submitted about his financial status.
In his current petition, DMX states that his bank account balance is zero and that his only asset of value is his home. He reportedly owes $300,000 in back child support, $1.4 million in other debts and family support and $950,000 to Compass Bank. The rapper and his former wife purchased the home in 2000 for $649,000 and stopped making payments in 2008. He reportedly owes $738,134 in mortgage payments, late fees and interest. According to his petition, the home is valued at $350,000.
Chapter 13 bankruptcy may be used to stop foreclosure proceedings. If the proposed repayment plan is approved, then debtors will be granted between three and five years to catch up the amount that they owe while they continue to make their regularly scheduled mortgage payments. A bankruptcy lawyer might advise clients about whether or not Chapter 13 bankruptcy is a good option for their financial situation. In order to qualify for Chapter 13 bankruptcy, debtors will need to have a reliable source of income.
Source: Uproxx, “DMX Is ‘drowning in debt’ and has reportedly filed for bankruptcy“, Delenda Joseph, Dec. 30, 2016