Video After The Jump
When news broke Monday, July 13, that 50 Cent had filed for Chapter 11 bankruptcy, it was all people could talk about on social media.
When some see the word "bankrupt" they automatically assume it means you have no money. In the G-Unit business mogul's case, that is far from the truth.
While out promoting the upcoming movie, Southpaw, 50 gave E!Online an exclusive statement on the filing.
"I'm taking the precautions that any other good businessperson would take in this situation. You know when you're successful and stuff, you become a target. I don't wanna be a bulls eye. I don't want anybody to pick me as the guy that they just come to with astronomical claims and go through all that. Walt Disney has filed bankruptcy. Donald Trump has filed bankruptcy. It means you're reorganizing your finances, but it does stop things from moving forward that you don't want moving forward. I gotta decent legal team. You don't have to worry."
The "In Da Club" hit maker's lawyer, William A. Brewer III, also issued a statement.
"This filing for personal bankruptcy protection permits Mr. Jackson to continue his involvement with various business interests and continue his work as an entertainer, while he pursues an orderly reorganization of his financial affairs."
Complex's Lauren Nostro wrote an interesting piece titled "50 Cent Filing for Bankruptcy Does Not Mean He's Broke." You can read the full article here.
In an excerpt from it she spoke "with Robert Gregg, president of Mainline Partners in Brooklyn, to break down exactly how this Chapter 11 filing works to squash any rumors."
Can you explain Chapter 11 bankruptcy protection in a general sentiment?
In a general sentiment, you usually file a Chapter 11 when your assets are worth more than a certain amount. In this case, 50 would not have been eligible for Chapter 7 or 13 because his debt is more than $390,000 in unsecured debt. He would automatically need to do Chapter 11, and here’s where the protection comes in—so you’ve got debt and a lot of times it’s looked upon negatively, but there can be multiple reasons. One could be, "I’ve got more debt right now than I have income coming in, can we work together a plan of protection to restructure?" Now the protection comes in because once it’s filed there’s a mainstay where typically 90 to 120 days or somewhere thereabouts, you’re putting together and formulating a plan of how you’re going to pay back your creditors. The majority is personal credit, not business. That could be one reason.They’re reporting that his assets in debts each are in the range of $10 million to $50 million so that alone put him in Chapter 11.
Oh yeah, definitely.
And finally, one Twitter user offered his take.
Follow Me
 |
 |
 |
 |
 |
 |
}
Comments