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Rap artist Young Buck has come up a few bucks short once again. Young Buck's bankruptcy has been changed to Chapter 7, and he's blaming his former mentor 50 Cent.
Young Buck had already filed for Chapter 11 bankruptcy and was working with a trustee to get back on his feet, The Wall Street Journal reports. The trustee wanted to modify Young Buck's contract with 50 Cent's recording company, and use the added revenue to pay down the rapper's debts.
But 50 Cent and his company, G-Unit Records, rejected Young Buck's bankruptcy plan. That left Young Buck with no choice but to file under Chapter 7, his trustee said in a court filing. A bankruptcy judge in Nashville, Tenn., approved the switch this week.
What's the difference between Chapter 7 and Chapter 11? One word: liquidation.
In a Chapter 11 bankruptcy, all collections are put on hold so a debtor can devise a plan to get his finances in order. Once a bankruptcy court approves the plan, all debts prior to the plan's approval are discharged.
But if a person or business has no chance of regaining financial fitness, a Chapter 11 bankruptcy may be dismissed and converted to Chapter 7.
Also known as liquidation, Chapter 7 allows Young Buck's assets to be sold and divvied up to pay off his creditors. Chapter 7 also requires a trustee to meet with creditors to discuss the liquidation, generally within 40 days of filing.
That seems to be the next step in Young Buck's bankruptcy case. A meeting with his creditors is set for Jan. 30.
Meeting with a lawyer can help you understand your options and how to best protect your rights. Visit our attorney directory to find a lawyer near you who can help.
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