Why did 50 Cent file for bankruptcy?
50 Cent has always been about getting rich or dying trying, so how come he filed for bankruptcy back in 2015?
At the time, 50 was estimated to be worth $155million, making him one of hip hop’s five richest rappers. On July 13th, though, he officially filed for bankruptcy in the US, causing fans and the feds to raise eyebrows.
When 50 Cent’s legal team made the announcement, the rapper owned a mansion with 26 bathrooms and 19 bedrooms, and had income from movies, headphones, vodka, bottled water, and much more, as well as his record sales.
Yet according to the court papers, 50 Cent (real name Curtis James Jackson III) had debts of $50million, totalling the same value as his assets.
Just days before 50 declared bankruptcy, he had been told he needed to pay $5million in damages to Lastonia Leviston, who had sued the rapper over a leaked sex tape.
It’s important to note that being ‘bankrupt’ and being ‘broke’ in the US are different things. 50 was by no means broke – he had cash but his claim was that it was tied up in businesses, investments and expensive assets (like his mansion). Being bankrupt means that someone can have a substantial income but debt that is equal to, or more than, that income.
There are different types of bankruptcy, too. 50 filed for Chapter 11 bankruptcy, which is for people with large debts. This type of bankruptcy allowed the rapper to sort his finances and pause or slow debt payments temporarily. He would also be able to keep all his current assets and continue to receive his income.
Speaking about the situation, 50 candidly admitted that the bankruptcy decision was “a strategic business move”. His lawyer also added that 50 would be able to “continue his involvement with various business interests and continue his work as an entertainer”.
For Lastonia Leviston, the woman suing 50 Cent, the bankruptcy motion meant she would still be paid, but would have to wait much longer for the payout.
50, meanwhile, seemed to see the humour in the scenario. Well-known for posting photos with stacks of cash and lavish cars, around the time of the bankruptcy, the rapper uploaded a photo of him next to a modest Smart car.
50 Cent’s decision to use the legal loophole of bankruptcy raised concerns about how the elite use the US system to create opportunities. Unlike in other nations, Chapter 11 lets wealthy individuals – including the likes of Donald Trump – ‘reorganise’ debts and maintain their lifestyles and businesses.
People who file for bankruptcy elsewhere tend to have their assets seized and face much stricter limits on how they earn. Neither 50 Cent, nor his legal team, confirmed that the lawsuit was the reason for the bankruptcy. What is clear though, is that the US financial system has its own version of ‘get rich or die tryin’.