A bankruptcy judge in Nashville, Tennessee has ordered David Darnell Brown, also known as Young Buck of the rap group G-Unit, to change his Chapter 11 bankruptcy to Chapter 7 liquidation. Brown attempted to file for Chapter 11 by reorganizing his financial situation with a restructured contract with G-Unit Records.
However, the deal between Brown and G-Unit Records could not be completed as Curtis Jackson, also known as the rapper 50 Cent, denied Brown the ability to modify his contract. Considering that the Chapter 11 filing depended on the restructuring of the contract, the judge ordered the case into Chapter 7 liquidation.
With Chapter 7 liquidation, you can have your assets sold to generate money to repay creditors. You can request that certain assets be deemed exempt from this liquidation process, and you can also ask for portions of the debt to be discharged. That is an advantage not necessarily afforded by Chapter 11. In this particular case, Brown may be forced to sell his stage name of "Young Buck," though that has not yet been confirmed.
While Brown may have the ability to get a clean slate if his popularity and music career take off, such a prospect is not always there for most people. If you are on the brink of personal bankruptcy, consult a legal professional with experience in the field.
Many will say that Chapter 7 is simple process, but an important financial decision such as bankruptcy should be done with a knowledgeable representative on your side. Having that support in your corner can spare you excess worry during bankruptcy proceedings and could get you to your ultimate goal of even financial footing.
Source: Total Bankruptcy, "Rapper Could Lose Name in Chapter 7 Bankruptcy Case," Brenna Working, Jan. 3, 2012