1. TBT

Why would a millionaire file for bankruptcy?

50 Cent is hardly broke.
50 Cent is hardly broke.
Published Jul. 15, 2015

Rapper 50 Cent, legally known as Curtis James Jackson III, filed for bankruptcy protection in Connecticut on Monday. For a man who two months ago was estimated to have a net worth of $155 million by Forbes, the move is puzzling.

Jackson, who reportedly made as much as $100 million in 2007 from his investment in Vitaminwater after it was purchased by Coca-Cola, produces a show on Starz and has appeared in nearly two dozen films. Just last week, the 40-year-old rapper, producer and actor was profiled in the New York Times as a "renaissance man."

So, is 50 Cent suddenly broke?

Not necessarily. It is rare for individuals to file for Chapter 11 bankruptcy, a measure usually reserved for corporations that need to be restructured. But people looking to reorganize their debts might also use Chapter 11, bankruptcy experts say. For Jackson, the filing might give him more time to pay his debts and give him a chance to come up with a payment plan, an option he might not have without Chapter 11.

"By all accounts, he does not appear to be a celebrity who is in financial distress," says Theodore Connolly, a bankruptcy attorney in Boston and co-author of The Road Out Of Debt: Bankruptcy and Other Solutions to Your Financial Problems.

In the bankruptcy filing, Jackson says that his debts and assets are worth between $10 million and $50 million. So he isn't exactly running out of money. But the move could be an effort to protect his businesses as he deals with his debts.

Jackson's filing comes just days after a jury ordered the rapper to pay $5 million to a Florida woman who sued him for posting a sex tape online without her permission.

The filing could be a strategic effort to stay in control of his assets while he deals with the lawsuit, says Michael Venditto, a bankruptcy attorney and partner at Reed Smith. Because his debts exceed $10 million, according to the filing, Jackson doesn't qualify for Chapter 13 bankruptcy, which would normally be used by individuals looking to restructure their debt.

Filing for bankruptcy might give a person more time to pay judgments like the one that was just handed to Jackson, but it wouldn't necessarily erase the debt, Connolly says. An individual might also file for Chapter 11 bankruptcy to attempt to restructure debts they haven't been able to reorganize another way or to try to break service contracts, he says.

— Washington Post


  1. Participants ride in Miami’s first Pride parade in 1978. “We are everywhere.” Indeed. [Tim Chapman  |  HistoryMiami Museum (1978)]
  2. White House Chief of Staff John Kelly.  (AP Photo/Susan Walsh, File)
  3. Oct. 30, 2017• TBT
    A Rotweiller mix puppy with his head buried in a Haloween themed pumpkin basket
  4. Little girl in colorful tutu skirt standing on green grass while holding magic wand
  5. TIJUANA, MEXICO - OCTOBER 5:  A woman walk past prototype sections of a border wall between Mexico and the United States under construction on October 5, 2017 in Tijuana, Mexico. Prototypes of the border wall propopsed by President Donald Trump are being built just north of the U.S.- Mexico border, where competitors who are hoping to gain approval to build the wall have until the first of next month to complete their work. (Photo by Sandy Huffaker/Getty Images) 775054665
  6. Slide 10 Star Wars: Chewbacca. As in, I'm going to Chewbacca the legs of the coffee table now. (Dreamstime/TNS)
  7. This July 23, 2008 image made available by NASA shows the planet Saturn, as seen from the Cassini spacecraft. After a 20-year voyage, Cassini is poised to dive into Saturn on Friday, Sept. 15, 2016.
 (NASA/JPL/Space Science Institute via AP) NY461
  8. Thinkstock
  9. funny dog wearing  blue coat and blond wig