Despite gaining fame as a talented rapper, one musician has been forced to file for bankruptcy this year. What started out as a Chapter 11 reorganization plan for the rapper has been changed into a standard Chapter 7 bankruptcy filing.
Recently, a judge in Tennessee has granted the motion to transfer the bankruptcy from Chapter 11 to Chapter 7. After discussing the case with his court-appointed trustee, the judge agreed that the rapper did not have the ability to reorganize his debts. However, he was lucky enough to qualify for Chapter 7, a type of consumer bankruptcy.
The rapper initially used a possible contract as collateral, per se, to obtain the Chapter 11 bankruptcy approval. However, the judge ultimately agreed with the trustee that this was too tenuous. Under the new filing, the rapper will be forced to sell off certain assets in order to take care of his debts. The good news is that some of his unsecured debts will be dismissed upon successful completion of the bankruptcy process.
Thinking about filing for bankruptcy in the state of Texas? If so, you’ll want to retain the representation of a San Antonio bankruptcy lawyer from our legal team who can help you throughout your filing. Contact the Malaise Law Firm now to set up your bankruptcy consultation.