17 Jul 2015
Many people wonder how a celebrity like 50 Cent is eligible to file bankruptcy. You might ask, “Where did all his money go?” Well, the Bankruptcy Code (the set of laws governing bankruptcy proceedings) doesn’t require a person seeking bankruptcy protection to be insolvent. In fact, there are two main types of bankruptcy proceedings: liquidations and reorganizations. Individuals who need bankruptcy protection have several chapters available to them: Chapter 7, Chapter 13, and Chapter 11. Farmers have their own type of bankruptcy proceeding under Chapter 12. The appropriate type of proceeding for an individual will depend on their particular situation. A bankruptcy attorney can advise you about the appropriate course of action in your case.
You can read about other bankrupt celebrities here.