Nothing necessarily happened. Chapter 11 is just restructuring of some debt in the aforementioned effort to not pay the lawsuit, and stifles any potential plan to seek further punitive damages. 50 Cent is not an idiot.
Vitamin Water I assume is still going strong, but his Beats-knock-off headphones (as in they were just as pricey and ####ty as Beats) probably failed.
His investments aren't necessarily sending him dividends, and it might be difficult to sell his stake to get the cash personally. I think Acey is right - this is more a prudent move to avoid paying the judgement, and less that he's "broke".
I used to work with trustees to recover assets in bankruptcy cases. From what I've seen you can't just have a bunch of money, claim bankruptcy and not have to pay a court judgement. The bankruptcy trustee will liquidate assets in order to pay your debts. I saw a lot of cases where people were allowed to keep their home but other assets were sold off, sometimes at auction. I suppose you could restructure debt or try and get your creditors to make a deal?
I used to work with trustees to recover assets in bankruptcy cases. From what I've seen you can't just have a bunch of money, claim bankruptcy and not have to pay a court judgement. The bankruptcy trustee will liquidate assets in order to pay your debts. I saw a lot of cases where people were allowed to keep their home but other assets were sold off, sometimes at auction. I suppose you could restructure debt or try and get your creditors to make a deal?
I'm pretty sure that's what happens in bankruptcies for normal people, not the super rich.
I'm pretty sure that's what happens in bankruptcies for normal people, not the super rich.
Exactly. I'm not saying 50 gets to write off the lawsuit and not pay anything. This is chapter 11 not chapter 7, so all it effectively does is protect assets and investments and buys his gang some time to try to work some magic to reduce the judgement and, as aforementioned, avoid further punitive damage. I reckon the root cause is that acquiring $5M in liquid is not ideal given how much is tied in the aforementioned investments/assets.
I used to work with trustees to recover assets in bankruptcy cases. From what I've seen you can't just have a bunch of money, claim bankruptcy and not have to pay a court judgement. The bankruptcy trustee will liquidate assets in order to pay your debts. I saw a lot of cases where people were allowed to keep their home but other assets were sold off, sometimes at auction. I suppose you could restructure debt or try and get your creditors to make a deal?
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I hate the law systems in NA. Someone is found guilty for doing something wrong and then cheats their way out of doing what they are told to do as punishment. I really disagree with people being able to claim bankruptcy and not really change their life at all.
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50 Cent files for Bankruptcy
