Social media photos raise questions about 50 Cent’s bankruptcy
Florida residents may recall that Curtis Jackson III filed for Chapter 11 bankruptcy protection in July 2015. Jackson, who is better known by his stage name 50 Cent, decided to pursue bankruptcy after a jury ordered him to pay $7 million to a female acquaintance for publishing a sex tape without permission. The famous rapper claims that he has cooperated fully and provided creditors with a true and complete picture of his financial situation, but photographs posted on the 40-year-old hip-hop star’s Instagram account seem to tell a different story.
The series of photographs depict Jackson with several bundles of $100 bills, and in one of the images the stacks of money have been arranged to spell the word ‘broke.” At a Feb. 18 hearing in Connecticut, the woman who sued Jackson over the video tape claimed that the images indicate that Jackson may have been less forthcoming about his assets and income than he claims to have been.
After seeing the photographs, the judge told Jackson’s lawyers that she wanted the rapper to appear in her courtroom and explain himself. She said that creditors and the public at large may lose confidence in bankruptcy proceedings unless the process remains transparent. Jackson’s Chapter 11 filing revealed debts of about $30 million. In addition to the sex tape award, Jackson owes large amounts to a mortgage lender and his partners in a failed business venture.
Chapter 11 bankruptcies are generally filed by businesses that have run into financial problems and wish to reorganize their debts. Individuals usually file either a Chapter 7 or Chapter 13 bankruptcy. However, there are situations that could lead to lawyers with experience in this area to recommend a Chapter 11 filing to individuals. This approach allows those with business interests to keep their commercial ventures running and their income streams intact while their debts are restructured.