Back in July of 2015, Curtis James Jackson, III, more commonly known as 50 Cent, filed for Chapter 11 bankruptcy relief in the United States Bankruptcy Court for the District of Connecticut, a little over two months after he was ranked fourth in the list of wealthiest hip-hop artists by Forbes. Jackson’s filing came on the heels of a New York state court ruling against him for $5 million in favor of Lastonia Leviston (plus $2 million in punitive damages that were later awarded post-petition) for impermissibly posting a sex tape online. Jackson listed approximately $36 million in liabilities and $20 million in assets, as well as about $108,000.00 in monthly expenses.
Notwithstanding some unique bumps along the road, including landing in hot water with the bankruptcy judge after posting a picture to Instagram of stacks of money arranged into letters spelling out the word “BROKE,” Jackson got his Chapter 11 plan confirmed on July 7, 2016, less than a year after he filed the petition. The key terms of the plan required Jackson to pay $18 million to Sleek Audio to settle a judgment, $6 million to Leviston to settle the state court judgment, and $4 million to settle a guarantee claim with SunTrust Bank, along with paying off other creditors over a period of five years.
Less than seven months after confirmation, Jackson paid off his five-year plan early and received his discharge. Jackson used $8.7 million of his own money and $13.65 million he received in a settlement of a legal malpractice lawsuit against other attorneys. Jackson’s unsecured creditors ultimately received more than his namesake under the accelerated payment schedule – approximately 72% of their claims.
However, Jackson is not finished litigating like it’s his birthday. On September 12, 2017, Jackson filed an adversary proceeding against his business managers for allegedly botching his bankruptcy, costing him an extra $200,000.00 in taxes and claiming that they illegally “helped themselves” to $90,000.00 of his money. Specifically, Jackson alleges that his business managers failed to make the proper IRC § 1398(d)(2)(A) election on his taxes after filing for bankruptcy, resulting in $2,000,000.00 in “unnecessary taxes.” As of the date of this article, the defendants have not yet responded to the complaint.