On the surface, Tyler residents who are experiencing financial problems might not find a kinship with wealthy and famous people who are also having their financial turmoil. However, when people who are prominent decide that they need to file for bankruptcy protection, it can provide a roadmap - albeit on a lower scale - for those who are experiencing financial issues of their own. This is particularly true if it is a business bankruptcy. While larger businesses will have issues that smaller businesses will not, these can be compared in terms of the owners and the scale of the business.
The rapper and businessman Curtis "50 Cent" Jackson has had a well-covered Chapter 11 bankruptcy that has been ongoing for two years. After becoming famous for his first album in 2003, he made a series of attempts to branch out and experienced financial problems because of it. While much of his music centered around saying how wealthy he was, in his bankruptcy case, he admitted that it was not true. Mr. Jackson settled his case by paying $22 million out of the $36 million he owed. The settlement was approved by the bankruptcy judge. During the past year, the judge had floated the idea of Mr. Jackson making a payment plan that would have extended for six years. He made his payment in full after he won a lawsuit that alleged legal malpractice. That money, coming to more than $13 million, paid part of his debts. The rest was paid by money he had in his own account.
If a smaller business has trouble equating its problems with those of a famous performer, they need to rethink their beliefs. Whether it is a family business, a limited liability company (LLC), a partnership or any other kind of business, needing debt reorganization by filing for Chapter 11 bankruptcy runs the gamut for a great many different people from all walks of life. With a reorganization under Chapter 11, it is possible to come to a better position, keep the business going, and end up in a preferable position than before.
With Mr. Jackson, he had to endure ongoing criticism for his apparent wealth and problems with his finances. However, that was superseded by his desire to get back into a stronger financial position through Chapter 11. Speaking to an attorney who knows the details of such a decision can help with moving forward and getting their finances and business back on track.
Source: jdjournal.com, "50 Cent's Chapter 11 Bankruptcy Discharged," Teresa Lo, Feb. 3, 2017