Musician and rapper Curtis James Jackson III, who goes by the stage name 50 Cent, has submitted a proposal to the bankruptcy court to repay over $23 million in debts that he is attempting to restructure as part of the bankruptcy that he filed last July. The proposed repayment would have Mr. Jackson paying $23 million to his creditors over the course of the next five years. If the plan is approved by the federal bankruptcy judge and confirmed, any remaining debt against the artist could not be pursued if he completes the payments as agreed.
According to a news report discussing the recent developments in the case, Mr. Jackson is facing criticism from the public as well as the court after he has repeatedly posted pictures on his social media accounts of himself posing with large piles of money, while at the same time telling the court that he has very little in cash assets. According to the article, the rapper submitted a declaration to the court in response to the judge’s questions and claimed the currency in the pictures was only prop money that is used for videos and photoshoots, and it has no actual value. It isn’t known if the court believed Mr. Jackson’s claim, but concerns about his concealment of funds in the bankruptcy case may prevent his repayment plan and discharge from being approved.
Debtors Can Be Seriously Punished for Concealing Assets in a Bankruptcy Case
Federal bankruptcy laws are designed to allow people with insurmountable debts to restructure or eliminate some of their debt in order to allow them to develop credit going forward. An important part of the bankruptcy system requires the bankruptcy court to have an accurate accounting of the debtor’s assets and obligations in order to reach a fair resolution for both the debtor and creditors. When debtors attempt to hide assets that they have from the courts, it can result in a plan being approved that unjustly deprived creditors of assets that should have been made a part of the bankruptcy. This can come back to haunt the debtor down the road.
Bankruptcy debtors may not attempt to literally hide money or other assets from the court, and it is also not permitted for a debtor to give away or sell certain assets shortly before or during a bankruptcy proceeding. To deter debtors from concealing assets, bankruptcy courts as well as federal criminal courts have jurisdiction to enforce a variety of sanctions against a debtor who is found to have concealed their assets from the bankruptcy court. Most commonly, a bankruptcy petition will be dismissed or amended after concealment is found to have occurred, although debtors can also be charged with perjury and face possible jail time.
Assets Should Not Be Hidden, Since They May Be Exempt
People considering bankruptcy are often tempted to conceal assets from the court and even their bankruptcy attorneys, but this is not a good idea. Certain assets, such as living essentials, a home, and even certain amounts of cash, may be protected from a bankruptcy proceeding, but it is impossible for a bankruptcy attorney to ask the court to exempt assets from a case if the attorney himself does not know of the asset. Bankruptcy debtors must be forthcoming and honest with their attorneys for the greatest likelihood of maintaining possession of their assets throughout a bankruptcy.
Are You Overwhelmed in Debt?
If you or a loved one feels overwhelmed in debt and is considering bankruptcy, a skilled attorney by your side will increase the chances of successfully discharging your debts and keeping as much property as possible. The Louisville and Southern Indiana bankruptcy attorneys at the Schwartz Bankruptcy Law Center have years of experience handling difficult bankruptcy cases, and we can help you get back on your feet. We advise and represent clients in various bankruptcy proceedings, and with our experience you can decide which course of action works best for you. Call 866-366-3328 today to schedule a risk-free consultation or contact us through our website.
More Blog Posts:
Federal Bankruptcy Judge Rules that Debtor May Discharge Debts Incurred While Studying for the Bar Exam, Kentucky Bankruptcy Lawyers Blog, published April 3, 2016.
U.S. Bankruptcy Judge Makes a Million-Dollar Ruling, Finding the Electronic “Currency” Bitcoin is Actually Property and not Currency, Kentucky Bankruptcy Lawyers Blog, published March 9, 2016.