According to CBS News, a federal judge in New York has thrown out rapper DMX’s bankruptcy case over inconsistencies.
The news outlet reports that a bankruptcy judge in White Plains dismissed the 42-year-old rapper’s July 29 Chapter 11 filing. DMX, whose real name is Earl Simmons, reportedly owes $1.8 million to creditors in contract disputes, goods and services and child support.
The judge reportedly tossed the case over “obvious inconsistencies regarding his income and assets, rendering it impossible to ascertain his financial affairs.” The judge also prohibited DMX from filing for bankruptcy for 18 months.
It is strange that DMX would file a Chapter 11 personal bankruptcy, which is usually attempted by businesses and amounts to a financial reorganization. Under a Chapter 11 bankruptcy, individuals get to keep assets while reorganizing financially to repay creditors. Because DMX’s case was thrown out of court, it will stop the automatic stay in place, allowing creditors to file lawsuits, garnish wages or attempt to repossess property.
In a similar fashion, a Chapter 13 bankruptcy allows debtors to enter into a repayment plan with creditors based on predicted future earnings within three to five years from a filing. It allows a debtor to keep property if he or she has fallen behind in payments and/or are about to lose his or her house or car.
Contact our Washington DC and Maryland bankruptcy lawyer to learn more about whether you should file bankruptcy to deal with your financial difficulties. If you have property that you want to keep, bankruptcy may be able to help. Call us at (202) 483-6070.
Law Firm of Kevin D. Judd
Judd’s Judgment: DMX’s bankruptcy shows that financial mismanagement and stress can occur to anyone.