50 Cent has filed for Chapter 11 personal bankruptcy on Monday (July 13) rather than testify about his finances in an ongoing lawsuit with Lavonia Levinston, mother of Rick Ross’ daughter.
The bankruptcy filing was made in Connecticut Bankruptcy Court, where 50’s lawyers claim he has $10-$50 million in assets but equal that amount in debt. Last month, 50 filed bankruptcy protection on his SMS boxing promotion. Last November, he appealed the courts to lift a freeze on his assets after losing a $17 million judgment to headphone maker Sleek Audio.
50’s lawyers argued that the bankruptcy’s automatic stay should apply the Leviston case as well, which would stop the state court proceedings.
Manhattan Supreme Court Justice Paul Wooten noted this was the second bankruptcy petition that 50 Cent had filed in the last 30 days. Leviston was already awarded $5 million for 50 Cent leaking her sex tape online without consent. She is seeking an additional judgment for $10 million in punitive damages.
At press time, Leviston’s lawayers are filing an emergency application in Manhattan federal court to get the bankruptcy stay lifted.
The hits just keep on coming for 50. No, you won’t see the man in an unemployment line anytime soon, but this gives you a clear hint that Christopher Wallace’s “Mo’ Money, Mo’ Problems” is indeed not just a cute song title.
According to what we know, 50 filed for Chapter 11 bankruptcy. That’s normally reserved for businesses, but you can file it as an individual (like 50 did). The key thing to remember is Chapter 11 reorganizes your assets so you can pay your debts — it doesn’t just wipe the slate clean like some people are claiming on Twitter. In other words, 50 is still going to have to pay this woman at some point.
Even if 50 filed a Chapter 7, which uses your assets to clear all your debt, this lawsuit doesn’t fall under a “dischargeable debt.” Things like child support, taxes, criminal lawsuit judgments and judgments from malicious behavior (like this case) still have to be paid.
The best guess is 50 was not keen on taking the stand and revealing the extend of his personal finances. We’ll see if this move keeps that from happening, or if it’s just delaying the inevitable.