According to recent filings, the Curtis James Jackson, III (“50 Cent” or “Debtor”) has 1-49 creditors, $10,000,001 to $50 million in Assets, and estimated liabilities of $10,000,001 to $50 million. Listed among the 20 largest creditors are Sleek Audio, LLC, Lastonia Leviston, Suntrust Bank, 8X10 Boutique LLC, Premium Assignment Corp. and American Express. The Debtor has indicated in papers filed with the Bankruptcy Court in Connecticut that his bankruptcy filing “is not primarily a result of excessive current expenses exceeding his current revenues, but rather the substantial costs of litigation and resulting awards against in the past year which total in excess of $20 million” and that while he has “substantial assets, he does not have the ability to pay the full amount of these litigation claims and all other asserted claims at the present time, thereby necessitating this chapter 11 filing.”
Debtors in bankruptcy are required to complete and file Schedules which list all of their assets and all of their debts, along with a statement of financial affairs (“SOFA”) listing other important financial information. 50 Cent must sign the Schedules and SOFA, declaring under penalty of perjury that the information provided in those documents is true and correct. While a debtor’s bankruptcy Schedules and SOFA are generally due within 14 days from the bankruptcy filing, 50 Cent has sought by motion to extend that deadline to August 3, 2015 (Docket Entry 30). Requests for extension are not uncommon, especially where the debtor runs his business through several entities and there is a large volume of information to be included in the Schedules and SOFA.
Once filed, the Schedules and SOFA should provide creditors and parties in interest a good picture of where 50 Cent’s financial life stands. Is he a victim of his own lavish lifestyle or drowning in litigation debt?
Heather L. Ries is an attorney with the Financial Restructuring and Bankruptcy Department of the law firm of Fox Rothschild LLP. Heather focuses her practice in matters related to bankruptcy, creditors’ rights, commercial workout and foreclosure disputes, and commercial litigation. You can contact Heather at 561-804-4419 or firstname.lastname@example.org.