Tuesday, July 14, 2015

50 cent files for bankruptcy! Wait, what does that mean anyway?

Tip: don't show up to your 341 meeting wearing all your gold chains.

As you all have heard by now, Curtis James Jackson III (aka 50 cent) has filed for bankruptcy protection.  Many of the articles I've read online make it seem like he's broke and living on the streets.  But 50 cent filed for Chapter 11 Bankruptcy, a type of bankruptcy most regular people don't know much about.  Very long story short, he can keep assets and continue making money, he just has to pay back creditors according to a bankruptcy plan and most importantly, creditors have to wait!  This article from complex.com sort of explains it: "50 Cent Filing for Bankruptcy Does Not Mean He's Broke".

For most regular folks your bankruptcy options are usually a Chapter 7 or Chapter 13.  Either you have no assets and low income and you get rid of your unsecured debt in a Chapter 7, or you might have some assets and a big higher income and you repay some of your debt in a Chapter 13.  Read more about your choices here.

And just for fun here is a list of famous people who have filed for bankruptcy:

  • Abe Lincoln
  • Thomas Jefferson
  • Walt Disney
  • Henry Ford
  • Larry King
  • Donald Trump
  • Mark Twain
  • Burt Reynolds
  • M.C. Hammer
  • Cindy Lauper
  • Mike Tyson
  • Toni Braxton

and many more.

For many people bankruptcy is a necessary step to reorganize their lives after a financial set back.

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