Why Do Millionaires File For Bankruptcy?

Most people think the word “bankruptcy” is a synonym for the word “broke,” and while that’s not precise, it’s usually close, but not always. If you are dealing with mounting debts in the Chicago area, and if you don’t see any realistic way to pay those debts, discuss your financial circumstances at once with an experienced Chicago bankruptcy lawyer. For posting a sex tape online, rapper 50 Cent was ordered in July by a court to pay $5 million to the victim. A week later, he filed for bankruptcy. Yet only two months earlier, Forbes magazine estimated his worth at $155 million.

He’s not broke. 50 Cent, whose real name is Curtis James Jackson III, has filed for bankruptcy to stay in control of his assets while he deals with the sex tape lawsuit. 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 $5 million judgment just handed to Jackson, but it won’t erase the debt. “I’m taking the precautions that any other good businessperson would take in this situation,” Jackson said about his filing.

Most people who file for personal bankruptcy, of course, have more immediate concerns – like stopping a foreclosure or a repossession. If you need to file for bankruptcy, a good Chicago bankruptcy lawyer can help you determine if Chapter 7, Chapter 13, or some other option is best for you. Bankruptcy is the legal way to get a fresh financial beginning, but it isn’t for everyone, and a good bankruptcy lawyer may be able to suggest other appropriate options. If you are deeply in debt in the Chicago area, immediately have an experienced Chicago bankruptcy lawyer review your financial situation and suggest the options and solutions that are right for you. Help is here – don’t wait to make the call.