Ohio music fans may be interested to hear that rapper DMX has filed for his third bankruptcy since 2009. The first case was thrown out for unreasonable delays while the 2013 bankruptcy was discarded because the judge believed that the rapper was misrepresenting his financial situation. The latest Chapter 13 case was filed in December 2016. DMX reportedly owes creditors more than $2 million.
Among his debts are $300,000 in back child support owed as well as $1.4 million in family and other debts. He also lists a $950,000 debt to Compass Bank while his only asset is a house estimated to be worth $350,000. The rapper also claims that he doesn't own the trademarks or copyrights to much of his music and that he has no money in the bank.
According to reports, DMX filed for bankruptcy in an effort to stop his home from being sold in a foreclosure sale. It is currently on hold as the case unfolds. The foreclosure took place in April 2016 because the musician and his former wife had failed to pay $738,134 in mortgage payments and other fees. The couple had reportedly stopped making payments in 2008 on the house, which was purchased in 2000 for $690,000.
Those who are experiencing financial challenges may wish to file for bankruptcy. Doing so might allow for debt to be reorganized or discharged completely. While the case is ongoing, creditors may be prevented from taking collection or other legal action against a debtor. This is because an automatic stay of such actions may be granted by a judge. An attorney might be able to explain more about the stay and other benefits of filing for bankruptcy, such as the ability to renegotiate the terms of secured loans.