Rapper 50 Cent (aka Curtis Jackson III) filed for bankruptcy protection today. I was a little shocked because “Fi’ty” was known to be in control of his brand and had built it up to somewhere in the hundreds of millions. But remember, at the end of the day 50 Cent is human just like you and I. And as humans sometimes we make financial mistakes. When a celebrity like 50 Cent Filed Bankruptcy, it makes people perk up and wonder what happened.
Many people file for bankruptcy for many reasons. Some file to stop a lawsuit. Some file to save their car from repossession or their house from foreclosure. Others lost income from a job loss, divorce or medical event and cannot continue paying their creditors. And even others file bankruptcy as a peremptory strike.
Some creditors may complain, but bankruptcy can be a very valuable tool for consumer. And even for 50 Cent. Whether you or 50 Cent filed bankruptcy, the minute the case is filed the automatic stay goes into effect. This auto stay STOPS NEARLY EVERYTHING. It stops most collection activities like lawsuits, collection calls, collection letters, demands for payments. It is powerful because it also acts as a shield to stop your creditors from taking your assets like your house, your cars or your business. That’s probably why 50 Cent files bankruptcy; to stop a creditor from taking his assets. He likely has a lot of cars, houses, clothing and jewelry that he would like to protect. 50 Cent also has other assets most people don’t have like ownership of businesses, investments in companies, record and endorsement contracts and copyrights in his music.
A review of major news articles show that this may be a tactic to stall paying a woman who had sued him for sex tape leak. According to the AP, She just got a judgment against him for $5 million. That alone would explain why 50 Cent filed bankruptcy.
I really don’t like posting links to TMZ, but the news outlet sure seems to be on top of celebrity news. According to TMZ, he apparently lost a $17.2 million lawsuit over a deal to design and market stereo headphones with Sleek Audio.
I get a bankruptcy feed supplied by the Wall Street Journal, and I saw their tweet this morning getting ready to go to Court. The Journal claims he filed as a preemptive strike for the sex tape suit because he was to appear in court today to answer as to punitive damages. Generally, when a state court Judge hears the word bankruptcy, he halts all proceedings until direction is given from the bankruptcy court. The stay likely would apply to this civil suit and pull the whole case into the bankruptcy court. It help explains why 50 Cent filed bankruptcy. Apparently he moved his boxing promotion company in to bankruptcy last May too.
Forbes estimated that 50 Cent made nearly $100 million by selling his stake in Vitamin Water to Coca Cola several years ago. He has claimed to be quite the businessman, but maybe he stretched himself too thin, investing in too many companies hoping to strike it rich again?
Whatever the reason 50 Cent filed bankruptcy, he seeks to use the inherent bankruptcy protection just like you can. Maybe you are not on the same scale as 50 Cent, but you may need protection from your creditors. Or you may need to shield and save your assets like your business, your house, your car or your bank accounts. You too can use the automatic stay to protect you, your family and your business.
Obviously 50 Cent doesn’t need my help. He has an army of lawyers that can help him. But you don’t have an army of lawyers you can call. That’s what we are here for. If you are getting harassed by creditors or afraid you may lose your assets, give us a call. Set up a consultation. We can help you. We can explain to you how bankruptcy can help you, just like it will help 50 Cent.