LOCATION: NEW YORK CITY
50 Cent vs. Rick Ross & bankruptcy
Here is a story for the music interested. The rapper Curtis Jackson, more commonly known as 50 Cent, was in the beginning of July last year (2015), ordered to pay 5 million + 2 million dollars to a woman named Lavonia Leviston, after a verdict in Manhattan Supreme Court.
What connection could be made between this woman and the hip hop artist Rick Ross (featured on Ace Hood´s song “Bugatti”) ? Well, she is the mother to Ross´s child and the main reason for the verdict is linked with the fact that Rick Ross & 50 Cent have quite a complicated history.
In 2009, Curtis Jackson published a video with sexual content of Lavonia Leviston, reportedly to bother Rick Ross due to a dispute. Because of this, Leviston filed a lawsuit which resulted in the verdict in July. The 7 million dollar payment 50 Cent have been ordered to make resulted in him filing for bankruptcy three days later.
So, what are the legal aspects concerning bankruptcy? By definition, it is a legal proceeding where a person or business is stated as unable to pay its outstanding debts. Either, the debtor files for bankruptcy (as in this case, 50 Cent, swedish term: gäldenär), or the creditors (the one with a claim, swedish term: borgenär) files for bankruptcy, which is less common.
In the U.S there are several types of bankruptcy filings (see the Bankruptcy Code, in Sweden: Konkurslagen 1987:672). In this case, it is reported that Curtis Jackson filed for a Chapter 11 bankruptcy protection. This certain filing involves a reorganization of a debtor´s business(es) and assets. This is the most complex bankruptcy procedure, compared with e.g a Chapter 7 filing which instead involves liquidation of the debtor´s assets.
In Sweden, this type of filing, the Chapter 11, would correspond to the legal procedure called Företagsrekonstruktion (regulated by Lag (1996:764) om Företagsrekonstruktion). The positive about this type of bankruptcy filing is that it gives the debtor (here 50 Cent) a fresh start by reconstructing the business to be able to pay future debts, instead of e.g a hardcore liquidation of all assets the debtor have left.
The only thing that might seem strange about this case is that Curtis Jackson´s net worth was estimated by Forbes at 155 million dollars in May this year, just two months earlier. Peculiar, if you ask me.
The aftermath of the rapper´s bankruptcy is to be continued. For now, this was the case about two beefing rappers, a 7 million dollar lawsuit & bankruptcy.
Lavonia Leviston might wake up in a new Bugatti,
it seems like 50 Cent won´t.