Not all of us are gifted at birth with such ready-made stage names like “Tyrone Power.” Most of us are either stuck with the lame one we are given, or we change it because we know it will help us rocket to stardom.
A man named “Curtis Jackson” apparently felt that way. And that’s why we all know him better as the rapper/actor 50 Cent. But maybe he should have chosen the name “A Billion Dollars,” because it turns out he just filed for chapter 11 bankruptcy.
So is the problem really that he only has 2 quarters to rub together as his name suggests, or is there something more going on here?
Different Chapters for Different Rappers
When people think of bankruptcy they usually think of chapter 7, whether or not they realize it. In chapter 7 you have little to no assets to protect, limited income, and you ask the court to wipe the slate clean. But this is not what 50 Cent is doing.
Chapter 11 bankruptcy is the chapter businesses turn to when they have bills coming due that they can’t necessarily afford to pay, but they aren’t entirely broke either. Most bankruptcy professionals call this a “reorganization” bankruptcy. Creditors are still going to be paid at least some of what they are owed, and business operations typically will continue, at least in some form.
The Flip Side of the Coin
50 cent is known for being a multi-faceted guy. Not only does he rap, but he acts, produces, and has other business ventures as well. Even though he is just one man, this makes him a lot like a fairly complex business. It follows then that chapter 11 bankruptcy could be the perfect strategy for him moving forward. It would allow him to retain some control over his assets and other business activities while simultaneously protecting him from creditors.
50 Cent just had his day in court. In part 2 we will hear what he has to say about his financial situation, and whether or not he really is completely broke.