Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “What is a bankruptcy discharge ?”
Hard times are likely in store for the rapper DMX after he received the bad news that a federal bankruptcy judge denied his claim for bankruptcy. The judge decided to cancel his bankruptcy case based on legal noncompliance. As a result, DMX will now face the full wrath of his creditors given his loss of the court’s protection.
DMX, whose real name is Earl Simmons, now faces the prospect of losing the few possessions he has to his name, including his stake in a home located in upstate New York. DMX’s bankruptcy filing states that he owed more than $1.8 million to creditors for a variety of reasons, including contract disputes, good and services provided and, most importantly, back child support.
In fact, the rapper’s back child support accounts for the vast majority of his personal debt, a total of $1.3 million. The massive figure is not owed to one person, but is instead the accumulation of debs owed to the multiple mothers of his 10 children. DMX claims that the huge arrearages are due to mistakes made by his former managers who failed to keep up with his child support obligations.
The problem leading to the filing was DMX’s claim that the child support debt actually harmed his career, preventing him from taking part in lucrative international tours. The reason? The State Department has a long-standing rule in place that says an applicant cannot receive a passport if he or she has $2,5000 or more in child support debt. As a result of his whopping debt, DMX says that he was in need to bankruptcy protection to allow him to get a passport, something that he says is critical for him to be able to earn the money needed to pay his bills.
Another problem for DMX, which was never addressed in his bankruptcy filings, was how he intended to get around the clear rule that child support debts are not dischargeable in bankruptcies. Courts around the country have repeatedly clarified that child support debt cannot be discharged, something that would seem to further complicate DMX’s attempt at receiving a passport.
The judge presiding over DMX’s bankruptcy said that rapper’s Chapter 11 filing will be dismissed because Simmons failed to provide the court with trustworthy information. The determination was made after U.S. Trustee Tracy Davis filed a complaint that Simmons gave inconsistent statements regarding his income and assets. These inconsistent statements made it impossible to determine DMX’s true financial state of affairs.
When the judge tossed the case he also made clear that the rapper would not be allowed to simply re-file. In his order canceling the Chapter 11, the judge said that Simmons would not be permitted to re-file for bankruptcy for at least 18 months. In the order, the judge also noted that a previous bankruptcy filing by DMX, made in 2009, was similarly dismissed, that time due to Simmons’ unreasonable delays.
If you find yourself needing the services of a Charlotte, North Carolina bankruptcy attorney, please call the skilled lawyers at Arnold & Smith, PLLC today at (704) 370-2828. As professionals who are experienced in the bankruptcy arena, our attorneys will provide you with the best advice for your particular situation.
“Rapper DMX’s bankruptcy filing tossed,” by Ernie Garcia, published at USAToday.com.
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