Rapper files for Chapter 13 bankruptcy protection

Florida residents may be interested to know that rapper Petey Pablo filed a Chapter 13 bankruptcy petition in North Carolina in April 2016. According to reports, he had roughly $50,000 in both assets and liabilities at the time of the filing. His creditors included Ford Motor Credit, Planet Fitness and the IRS. This is the third time that the musician has filed for bankruptcy protection.

He previously filed for Chapter 13 bankruptcy in 2009 when he had roughly $560,000 in assets and roughly $850,000 in liabilities according to court papers. That case was eventually dismissed because he failed to stick to the required repayment plan. Though he had reportedly fallen on hard financial times, he recently made a cameo on the series “Empire” and has written songs that have appeared on the show and on its soundtrack.

Individuals who are looking to find relief from debt as well as from creditor phone calls may want to consider Chapter 13 bankruptcy. It may be possible to reorganize both secured and unsecured debts into a more manageable monthly payment. Any remaining balance after the three or five-year repayment plan may be forgiven and formally discharged. During the repayment period, creditors may not pursue legal action unless it is approved by the bankruptcy judge.

Attorneys will often note that a Chapter 13 filing is a possible way to stop foreclosure proceedings. The plan can incorporate past due mortgage payments, thereby allowing a homeowner to catch up and then stay current. There are several eligibility requirements that a lawyer will outline when discussing other available forms of debt relief.