Filing for bankruptcy is a viable option for those in Lane County who are truly struggling with overwhelming debt. It is not a decision that should be made capriciously or used to discharge debt that you simply don’t want to pay. Failure to comply with federal and state bankruptcy laws can result in monetary fines. Your bankruptcy filing can also be denied altogether if you negligently or fraudulently apply for bankruptcy.
Popular rap artist DMX—legally known as Earl Simmons—allegedly did not provide honest information when filing for Chapter 11 bankruptcy in New York; there were discrepancies when it came to his income and assets. As a result, a bankruptcy court judge dismissed his case without discharging any debt. The rapper, who owes approximately $1.8 million in back child support and other debt, could now lose his assets to creditors. This was not the first time that Mr. Simmons has had a bankruptcy case dismissed for legal non-compliance, either. In 2009, his bankruptcy filing was thrown out for “unreasonable delays.” The court has also banned from filing bankruptcy again for a minimum of a year and a half.
Anyone who is considering filing for bankruptcy should remember that it is a complex legal process with legal consequences. A bankruptcy attorney can guide you through the process and make it that much easier—as long as you provide honest information. Cooperation with the court is also imperative to get all of your debts discharged, stop creditor harassment and find a fresh financial start.
Source: USA Today, “Rapper DMX’s bankruptcy filing tossed,” Ernie Garcia, Nov. 8, 2013.