Rap superstar 50 Cent is inches away from finalizing his bankruptcy. The rapper filed a tentative bankruptcy agreement that requires approval from the court. In the agreement, he agreed to settle his debts with creditors for $23.4 million. In order to meet these obligations, he plans to sell a multimillion-dollar mansion in Connecticut and use future proceeds he plans to receive in a $75 million malpractice recovery.
One of the most contentious areas of dispute in 50 Cent’s bankruptcy process related to a $7 million debt he owes after losing a lawsuit to Lastonia Leviston, who accused the musician of publishing a video of them engaging in sexual acts. The bankruptcy settlement also involves the rapper settling an $18 million debt over a failed business venture related to headphones and other multimillion-dollar debts.
The payment schedule proposed in the settlement offers 50 Cent incentive to pay off as much of his debts as quickly as he possibly can. The faster he pays off his debts, the more money he can save — between 74 and 92 percent.
Fifty Cent’s biggest musical moment happened in 2003 when he soared to popularity with his first album called, “Get Rich or Die Tryin’.” He has since maintained his popularity and as the head of G-Unit Records, he has sold over 22 million albums. In addition to music, 50 Cent has also shown up in a number of popular films.
Bankruptcy is a great way to resolve and organize toxic debt. In 50 Cent’s case, he filed for Chapter 11 proceedings which is not very common unless the debts involve a massive amount of money. As for the usual New Jersey resident, Chapter 13 or Chapter 7 proceedings are usually the most appropriate for his or her needs.
Source: Wall Street Journal, “50 Cent Nears Bankruptcy End With $23.4 Million Payout Plan,” Katy Stetch, May 19, 2016