How Can Rap Star “50 Cent” be in Bankruptcy?

Bankruptcy Lawyer

None of us “regular people” can relate to the amount of money that rapper 50 Cent (Curtis James Jackson III) makes on his songs, concerts and CDs.  If he makes so much money singing, and endorsing products, why is he in bankruptcy?

In July, he filed bankruptcy, a Chapter 11 Plan, which is a reorganization, to pay back his creditors.

Here are some insights into why someone that “rich and famous” would have to hold off his creditors in bankruptcy court:

  1. He says he earns about $184,000 per MONTH, BUT
  2. He lists expenses of $108,000.00 per MONTH! (The house he bought from boxer Mike Tyson, with 21 bedrooms, 24 bathrooms and a nightclub, costs $72,000.00 per month, and the gardening costs $5000.00 per month!)  He supports a grandparent and pays $12,000.00 per month in child support.
  3. He is losing money in 2 businesses.
  4. He claims he’s not as wealthy as he appears, earning only 10 cents per song.
  5. He was sued by a former girlfriend for posting sex tapes online, and lost to the tune of $5,000,000.00.

And, to top it off, he still apparently needs to show he still looks rich by posting Instagram photos with lots of cash, like this one:

Hmm......

Hmm……

The judge was very angry, and required the rap star to come in to Court to explain these pictures. 50 said that he has an image to maintain, and that the cash is “fake”.  Wow!  This really demeans the legal process he is going through, and cheapens it.  It also contradicts his claim that he’s not so rich!  And, Mr. Jackson is trying to use it to help him?! Bad move!

What can we learn?

  1. What matters is not how much you earn, it truly is how much you spend.  Many of these monthly expenses are not only luxuries, but GRAND luxuries, that no “real person” can imagine.
  2. In our real lives, our problems are small, but we can use the same concept to see which expenses and which things we truly need.
  3. Don’t trivialize the bankruptcy process on social media!

Our problems are not as “Grand” as 50-Cent’s, but they are important! After hearing about these problems, it makes your problems seem small, right?

Daniel  J. Winter

BankruptcyLawChicago.com

djw@DWinterlaw.com

312-789-9999

Offices in Chicago, Gurnee, Oak Lawn, and Skokie,  Illinois