Category Archives: Celebrity Bankruptcy Cases

Rapper DMX Files for Chapter 11 Bankruptcy Relief

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Rapper DMX filed for Chapter 11 bankruptcy relief on Monday, July 29, 2013 in the Southern District of New York. The bankruptcy case number is 13-23254. He filed his bankruptcy case under “Earl Simmons” aka DMX aka Dark Man X. He previously filed a Chapter 13 bankruptcy petition back in August of 2009, but the case was dismissed. He also filed a Chapter 7 bankruptcy petition in December of 2009 but did not receive a discharge of his debt.

According to his filed petition and list of 20 largest creditors he has debts like most other consumers: he has small medical debts, credit card collection and other types of collection activity. He also has multiple judgments filed against him that exceed over $400,000. He owes American Honda Finance a little over $21,000 for an unsecured car loan. His largest debts are his family support obligations: one where he owes more than $1.24 million and another where he owes a little over $84,000.

It seems like there are more and more professional athletes and movie stars seeking the advice of bankruptcy lawyers to file for relief. The mortgage meltdown took down a number of wealthy athletes the last few years. Child support and unpaid taxes are also issues that celebrities have issues with, especially retired athletes. Once they retire and they do not receive a check each month cash flow tightens up real quick. Too many fancy leased cars and extravagant homes do not help either. Hopefully DMX will bounce back strong as ever from his bankruptcy filing.

Everyone files for bankruptcy to obtain a “fresh start” in their lives. Everyone makes mistakes whether they are financial or otherwise. The key is recognizing those mistakes and doing something about it. Filing for bankruptcy is not a shameful action. Ask any bankruptcy attorney, the need to file bankruptcy can truly happen to anyone. It can happen to someone that was rich and famous and made some bad investment decisions. It can happen to someone that has to support a family of five working a minimum wage job living from paycheck to paycheck. I always tell my clients that it is a business decision they make when their debts exceed their ability to repay them. Everyone has the chance to correct their mistakes and should not be held prisoner by their debts for the rest of their life. Everyone deserves a second chance for a “fresh start.” Once you get rid of the toxic debts you are free to begin again like DMX will be able to.

Do You Need to File for Bankruptcy? You are Not Alone

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A lot of my clients that are faced with having to file for bankruptcy feel like they are alone in this financial calamity and that they will never recover financially.  You do not have to feel alone. There were over 1.4 million bankruptcy filings in the United States for the 12-month period ending September 30, 2011.  These people came from all aspects of life – poor, middle class and even some mega rich people have had to file for bankruptcy.  You may even recognize some of these famous people that have filed for bankruptcy in the past: Cyndi Lauper, Kim Basinger, La Toya Jackson, Larry King, Mickey Rooney, Mike Tyson, Natalie Cole, Stephen Baldwin, Toni Braxton and Walt Disney.

I would view filing for bankruptcy as a financially sound business decision.  I am sure the famous bankruptcy filers above look at bankruptcy the same way.  You take a hard look at your bottom line – after paying all the necessities of life like a mortgage/rent, utilities, food, insurance and transportation do you have enough left over to pay your creditors?  If not, then one of the options you should take a look at is filing for bankruptcy protection.

Filing for bankruptcy does not mean that it is the death of your financial history.  There are two things learned from these famous filers:  1) Anyone can have financial problems and even the rich and famous may need to file for bankruptcy, 2) You can get a fresh start and come back even stronger financially.  Some of these famous people that have filed for bankruptcy are more financially well off than ever.  Filing for bankruptcy helped these people restructure or discharge their debts.  Once their debts are discharge they are free to pursue their passion and their dreams to get back to where they used to be.

You can do the same as these famous people who have fallen on hard times.  If you are having problems with your mortgage payment qualify to file a Chapter 7 bankruptcy we take a look at your financial situation and see which chapter of bankruptcy would benefit you the most.  After your bankruptcy case is filed and your debts are discharged you can rebuild your credit and financial life back up to its former glory or even exceeding it.

If you are struggling with credit card debts, a car payment or mortgage payment bankruptcy can help.  I have been a bankruptcy lawyer my whole career and am available to help you at 1-877-9NEW-LIFE or 877-963-9543 to schedule a free consultation today.